IOI Properties Group stays resilient despite challenges arising from COVID-19 pandemic
Kuala Lumpur, 26 November 2021- IOI PropertiesGroup Berhad’s (IOIPG) net profit in the first quarter ended 30 September 2021 (Q1 FY2022) grew 8% to RM208.5 million compared to RM192.6 million recorded in the preceding year corresponding quarter. IOIPG recorded revenue of RM431.8 million and profit before taxation of RM260.7 million in Q1 FY2022 despite operating in a challenging business environment due to the outbreak of COVID-19 pandemic.
Revenue and operating profit for the property development segment was RM363.2 million and RM202.2 million respectively in the current year quarter. For the property investment segment, the Group recorded revenue of RM59.2 million and operating profit of RM25 million. Revenue for the hospitality and leisure segment was RM7.6 million with an operating loss of RM15.2 million.
IOIPG Chief Executive Officer Dato’ Voon Tin Yow said despite the challenges faced by the property industry, the Group’s financial results for Q1 FY2022 was commendable.
“We are confident that Malaysia’s economy is on the path of recovery to pre-pandemic levels as most sectors of the economy are allowed to operate at full capacity under the new normal. The vaccination rate among the adult population in Malaysia has surpassed 95% and the country is transitioning towards an endemic phase. Therefore, we expect to see growth picking up across economic sectors,” he said.
IOIPG endeavours to stay resilient during these challenging times and focus on driving sales of its mid-priced range of products via its innovative and aggressive campaigns and capitalise on its capability in digital marketing. The Group will also continue to focus on launching offerings that ride on Government-driven support initiatives for the property development sector.
Currently, IOIPG has 27 on-going projects under construction in Malaysia, Singapore and Xiamen, China, that are highly sought-after and strategically located in high growth areas with excellent connectivity, thus providing reliable and steady income streams for the Group. For instance, its residential developments inXiamen, China namely IOI Palm International Parkhouse, which is scheduled to complete in FY2023 and IOI Palm City will continue to contribute to the Group’s financial performance in the coming quarters. Meanwhile, IOI Palm City Mall has commenced operations on 28 October 2021, and this too is contributing to the recurring income of the Group.
In Singapore, the Group’s acquisition of a new development site at Marina Bay, which is planned for a mixed-use development comprising residential, hotel and commercial components will complement its existing developments in the country and contribute to the business growth of the Group.
To stay resilient, IOIPG is constantly strengthening the team by developing its people and ensuring a workforce that is digital and technology-savvy. The Group will inculcate a high-performance culture within our workforce in order to consistently deliver the best in quality and service, and to achieve our Vision of Trusted.