KUALA LUMPUR: Eastern & Oriental Bhd (E&O) posted a 14.5 per cent rise in net profit to RM34.4 million for the third quarter (3Q) ended Dec 31, 2023, up from RM30.1 million in the previous year.
The company's revenue saw a 13.6 per cent increase to RM92.2 million from RM81.2 million the same period last year.
E&O credited the growth to the progress of its ongoing projects, strong sales of new properties, and improved average room and occupancy rates.
For the nine-month period, its revenue increased 19.3 per cent to RM301.5 million from RM252.8 million.
In its quarterly report, E&O said the properties segment recorded revenue of RM220.2 million compared to RM182.4 million in the previous financial period ended Dec 31 2022, representing an increase of RM37.8 million or 20.7 per cent.
This was mainly due to higher revenue recognition from the on-going project, Arica in the current financial period.
Meanwhile, the hospitality segment recorded a revenue of RM77.4 million compared to RM67.3 million previously.
"This marked an increase of RM10.1 million or 15.0 per cent. The increase in revenue mainly due to the higher average room rate and occupancy rate in the current financial period," it said.
E&O managing director Kok Tuck Cheong said the revenue growth trajectory has exceeded its property sales target.
"In the coming months, we have plans to design and launch a range of curated product offerings catering to market expectations.
"Our upcoming project comprising 261 units of low-density luxury condominium is targeted for launch in the second quarter of 2024," he added.
Kok said the remaining reclamation work for the 507-acre Andaman Island Phase 2 is advancing steadily and according to plan.
He expressed confidence in the company's current performance and expects the positive momentum to continue into the next quarter.