Glomac's 4Q net profit down 16% due to higher expenses and finance costs

• Administrative expenses rose to RM5.13 million from RM3.39 million in 4QFY2022, other operating expenses increased to RM8.12 million from RM1.81 million, and finance costs went up to RM7.92 million from RM6.07 million.

KUALA LUMPUR (June 21): Glomac Bhd’s net profit fell 15.58% to RM13.92 million for its fourth quarter ended April 30, 2023 (4QFY2023), from RM16.49 million a year earlier, mainly due to higher expenses and finance costs.

Administrative expenses rose to RM5.13 million from RM3.39 million in 4QFY2022, other operating expenses increased to RM8.12 million from RM1.81 million, and finance costs went up to RM7.92 million from RM6.07 million.

Earnings were also affected by lower operating income of RM229,000 (against RM1.48 million previously) and higher share of losses of associated companies totalling RM263,000 (from RM161,000).

Quarterly earnings per share fell to 1.81 sen from 2.15 sen a year earlier, Glomac's bourse filing showed.

Quarterly revenue rose 78.07% to RM131.09 million, from RM73.62 million, lifted by higher contributions from both the property development and property investment segments.

The group declared a final dividend of 1.25 sen per share, with the payment date to be announced later. 

For the full financial year, Glomac’s net profit dropped 17.25% to RM31.34 million from RM37.87 million in FY2022, while revenue rose 31.4% to RM341.02 million from RM259.52 million.

Glomac expects FY2024 to be another challenging year amid growing concerns over inflation, labour shortage, rising interest rates and material costs that will affect the property sector.

Shares in Glomac closed unchanged at 31 sen on Wednesday (June 21), giving the group a market capitalisation of RM248 million.