Berjaya Land returns to black in 4Q

KUALA LUMPUR: Berjaya Land Bhd (BLand) has posted a fourth quarter net profit of RM72 million for financial year ending April 30, 2010, a 245% increase from a net loss of RM49.5 million a year earlier.

The growth was underpinned by a higher profit contribution from the property development division, as well as a higher share of profits from associated companies.

In a flling with Bursa Malaysia on Wednesday, June 23, the company recorded a revenue of RM1.1 billion for the quarter under review, compared to RM971.7 million a year earlier.

The increase in revenue was due to higher property sales arising from several mixed development and residential development projects achieved by the property development division, as well as contributions from higher room sales from the hotels and resorts division.

Earnings per share stood at 5.79 sen compared to a loss of 3.97 sen a year ago.

For the year under review, the group’s net profit was RM107 million compared to a decline of RM97.7 million in FY2009.

The net profit was caused by higher property sales from the property development division; better performance from investments in associated companies and jointly controlled entities; and writeback of impairment in value of investments in associated companies and jointly controlled entities.

Its revenue for FY2010 was lower by 2.2% to RM4 billion from RM4.15 billion a year, while earnings per share was at 6 sen from 4.5 sen a year ago.

On future prospects, BLand is optimistic that the group’s performance for the financial year ending April 30, 2011 would be good “given the improving economic conditions that will have a positive impact to the property development and the hotels and resorts businesses”.