KUALA LUMPUR: Eastern & Oriental Bhd's (E&O) net profit surged to RM29.73 million in the second quarter (Q2) ended September 30, 2023 from RM16,000 a year ago on unrealised foreign exchange gain and higher revenue.
The company reported a gain of RM25.7 million due to the strengthening of pound sterling against the ringgit in Q2 FY2024, compared with an unrealised foreign exchange loss of RM42.7 million in the corresponding quarter in Q2 FY2023.
The company's revenue also rose 30.4 per cent to RM123.9 million in Q2 FY2024 from RM95.0 million last year.
The properties segment's revenue rose by 35.0 per cent from RM71.4 million to RM96.4 million in Q2 2023, as a result of higher sales of its on-going project, Arica@Andaman, as well as its joint venture projects namely Conlay, The Peak and Avira Garden Terraces.
Similarly, the hospitality segment's revenue increased by 15.8 per cent from RM22.5 million to RM26.0 million, attributed to higher average room rate and occupancy rate achieved by Eastern & Oriental Hotel (Penang) and E&O Residences (Kuala Lumpur), in the current quarter under review.
For the cumulative six-month financial period ended September 30, 2023 (1H23), E&O registered net profit of RM62.69 million from a net loss of RM1.6 million last year, while its revenue rose by 22.0 per cent from RM171.6 million in the corresponding period last year, to RM209.3 million.
The properties and hospitality segments were the revenue growth drivers, with revenue up 22.2 per cent to RM157.4 million and 20.8 per cent to RM49.4 million, respectively.
Commenting on the results, managing director Kok Tuck Cheong said the encouraging sales from Arica not only indicate its understanding to deliver and cater to the demand of today's property buyers, but also stand to support the company's larger ambitions and strategies of creating a sustainable population of the Andaman Island in the long-run.
With this Kok said, the company is currently working on its up-and-coming landed homes in Andaman, which is expected to be launched in the fourth quarter of financial year 2024, with anticipation that the positive responses received from our Andaman sales will continue.
"In essence, the property market is showing promising signs of growth, and we are cautiously optimistic that this will further bolster our earnings, not only from Penang, but from the sales of our developments located across prime areas such as Damansara Heights in Kuala Lumpur and Johor Bahru," he said.