Glomac earnings 20% down in the third quarter

PETALING JAYA: Property developer Glomac Bhd’s earnings fell by nearly 20% year-on-year (y-o-y) in the third quarter of financial year 2018 (3Q18), despite a stronger top line growth in the quarter in review.

In a filing with the stock exchange, the company said its 3Q18 net profit fell to RM4.31mil from RM5.37mil a year earlier.

“This was mainly due to cost savings from finalisation of costs in the Lakeside Residences project in the corresponding quarter the previous year,” it said.

However, Glomac’s revenue in the third quarter rose by 20.16% y-o-y to RM105.13mil, on the back of strong contributions from its key ongoing developments, namely Lakeside Residences in Puchong, Saujana KLIA in Dengkil and Saujana Perdana in Sg Buloh.

Earnings per share was 0.54 sen in 3Q18. The company did not declare any dividend for the quarter in review.

Cumulatively, for the first nine months of FY18, the property developer’s bottom line plunged by nearly 93% y-o-y to RM7.82mil as compared to RM109.16mil a year earlier.

The significant fall in profitability was attributed to a one-off profit recognition for the disposal of land in the previous year.

Glomac’s revenue in the period decreased by 26% y-o-y to RM312.55mil, also as a result of the one-off RM145.6mil-worth land disposal in the previous year.

In a separate press release, Glomac group executive chairman Tan Sri FD Mansor said the group’s performance in FY18 is expected to be challenging, even with its planned future property launches.

“Market conditions may be challenging, but Glomac’s pipeline of development projects remains strong. The group has been selectively pacing its launches, focusing mostly on affordable landed residential and township products to a fair level of success,” he said.