E&O's 4Q net profit dives 80% on-year on higher expenses

• The lower earnings were also due to the higher selling and marketing expenses of RM4.52 million in 4QFY2023, compared with RM2.2 million a year before.

KUALA LUMPUR (May 31): Eastern & Oriental Bhd’s net profit plunged 79.64% to RM16.09 million in the fourth quarter ended March 31, 2023 (4QFY2023), from RM79.02 million a year ago, amid a sharp increase of other expenses at RM120.51 million, from RM23.63 million a year before. 

The lower earnings were also due to the higher selling and marketing expenses of RM4.52 million in 4QFY2023, compared with RM2.2 million a year before.

Earnings per share sank to 1.1 sen in 1QFY2023, compared with 5.45 sen a year before, the property developer's bourse filing showed.

Quarterly revenue, however, rose 15.15% to RM65.3 million, from RM56.71 million a year before.

For the full FY2023, E&O posted a net profit of RM44.55 million, down 30.14% from RM63.76 million in FY2022, despite revenue growing 126.39% to RM318.07 million from RM140.5 million.

Net profit was dragged by a write-down of the property development costs amounting to RM135.3 million, forex loss of RM7.58 million versus forex gain of RM23.18 million previously, cost of sales rising to RM154.16 million, other expenses more than tripling to RM164.33 million, and other income declining to RM129.56 million.

On the group’s prospect, its managing director Kok Tuck Cheong said its project on Andaman Island phase one, The Meg, is fully sold.

Its second project launched on Andaman Island phase one, Arica, which started selling in March 2023, has received an encouraging take-up rate, he said in a separate statement.

At 4.15pm, shares of E&O fell half a sen or 1.56% at 31.5 sen, giving the group a market capitalisation of RM488 million.