E&O returns to the black in FY2022

KUALA LUMPUR (May 25): Eastern & Oriental Bhd’s (E&O) net profit for the financial year ended March 31, 2022 (FY22) returned to the black at RM64.06 million from a net loss of RM71.74 million previously.

However, revenue in FY2022 eased to RM140.49 million against RM304.73 million in FY21.

In a filing with Bursa Malaysia, the property developer attributed the decrease in revenue to the decline in its properties segment's revenue, mainly due to the sale of land parcels of RM98.3 million recognised in FY21 and lower sales of completed properties of RM70.4 million in FY22.

For the current financial year, its hospitality segment recorded an operating profit of RM33.3 million compared to an operating loss of RM63.3 million in FY21.

“The increase in operating profit was in part due to the increase in revenue and lower cost as a result of a waiver of lease payment of RM11.8 million.

“In addition, the reversal of impairment loss on the right-of-use asset of RM35.1 million compared to an impairment loss of RM31.9 million in FY21 attributed to an increase of RM67 million in the operating profit for the current financial year,” it said.

On the group’s prospects, E&O said despite an increase in economic activities which should augur well for the economy, inflationary spikes across all major sectors would pose challenges for the recovery process.

“Following the encouraging sales of the apartments in ‘The Meg’ project on the reclaimed island, Andaman, the group is working on plans for subsequent project launches,” it said.