PETALING JAYA: Premier lifestyle property developer Eastern & Oriental Bhd (E&O) reported revenue of RM85.4 million for the first quarter of its financial year ending March 31, 2024 (Q1’24), up 11.5% from RM76.6 million in the corresponding quarter last year.
The improvement was attributed to higher revenue from the property segment by 6.2% from RM57.4 million to RM60.9 million in Q1’24, as a result of increased contribution from land reclamation and the newly launched Arica@Andaman project.
Similarly, the hospitality segment registered higher revenue of RM23.4 million against RM18.4 million a year ago, translating to a 27.2% increase, driven by better occupancy rates at Eastern & Oriental Hotel (Penang) and E&O Residences (Kuala Lumpur) due to the influx of domestic and international tourists.
The group’s profit before tax and profit after tax for Q1’24 surged 11-fold and 43-fold to RM35.8 million and RM36.9 million, respectively, from RM3.2 million and RM0.9 million a year ago.
The growth was due to enhanced revenue and unrealised foreign exchange gain of RM25.7 million recognised during the quarter under review, compared to unrealised foreign exchange loss of RM22.8 million in Q1’23. Correspondingly, earning per share improved to 2.16 sen from a loss of 0.11 sen.
Managing director Kok Tuck Cheong said, “We are pleased with the promising results to commence the beginning of our financial year. The visible strong take-up rates of our two newly launched properties at the Andaman Island namely The Meg and Arica reflect our track record and market recognition as a lifestyle developer. Likewise, our hotels in Malaysia and London are experiencing higher occupancy rates, coupled with higher demand for our banqueting services for corporate and private events.”
He said E&O anticipates the Malaysian property market to improve.
“We are cautiously optimistic that we will be able to execute our plans and strategies to bring the group to greater heights. The launch of our new product offerings is already in the pipeline, with launches expected in the fourth quarter of our financial year 2024,” he added.