KUALA LUMPUR (Nov 12): Hit by the extension of the Movement Control Order (MCO), Guocoland (M) Bhd slipped into the red with a net net loss of RM7.98 million for the first quarter ended Sept 30, 2021, compared with a net profit of RM8.55 million a year earlier.

Quarterly revenue dropped 61.37% to RM35.13 million from RM90.93 million, as the MCO extension affected the sales and construction progress of the group’s development projects, the property developer said in a bourse filing.

“Correspondingly, the group also incurred lower expenses on selling and marketing for the current financial period by RM0.7 million due to lesser sales and marketing activities from on-going projects,” it said.

Guocoland also incurred a lower finance cost of RM6.24 million, from RM9.15 million last year, mainly due to the reduction in group borrowings, as well as reduction in interest rate by Bank Negara Malaysia.

“As a result, the group recorded a loss before tax of RM7.6 million, as compared to profit before tax of RM5.2 million in the previous corresponding quarter,” it added.

On a quarter-on-quarter basis, Guocoland also sank into the red from a net profit of RM4.21 million in the immediate preceding quarter, as revenue plummeted 73.71% from RM133.63 million.

Guocoland expects the property market to stage a gradual recovery, as it overcomes the large overhang of unsold properties and as consumers rebuild their finances to commit to spending on large capital items.

“On this note, the group will continue to focus on monetising its inventories and timely completion of its development projects. New product launches will be phased according to prevailing market sentiments,” the group said.

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