S P Setia 2Q profit up 3.6%

KUALA LUMPUR: S P Setia Bhd recorded a net profit of RM95.8 million for its second quarter ended April 30, 2013 (2QFY13), 3.6% higher than the RM92.4 million posted in the previous corresponding quarter.

In a filing with Bursa Malaysia yesterday, the group attributed the increase to a change in its product mix, with a larger percentage of the profit contributed by sales at high rise developments as compared to landed properties in the previous year.

Revenue in the quarter under review came to RM711.3 million, which was 15.2% higher than RM617.2 million in 2QFY12.

S P Setia said the higher revenue was contributed by its residential and commercial properties in the Klang Valley and Johor Baru which achieved higher overall group sales compared with FY12.

The group also recorded RM1.6 billion in sales during 2QFY13, bringing the total group sales for the current financial period to RM4.4 billion.

S P Setia said this includes the group’s 40% share of the £681 million (RM3.3 billion) sales clinched by its Battersea Power Station joint venture project in London, which amounts to RM1.3 billion.

For the cumulative six-month period of FY13, S P Setia recorded a higher net profit of RM188.68 million, against RM166.39 million in the previous corresponding period. Revenue totalled RM1.39 billion, up from RM1.1 billion previously.  

Looking ahead, the group said it was well on track to achieve its RM5.5 billion sales target for FY13.

“Over the next few months, the group intends to focus on another equally important aspect of its operations which is to improve and further streamline its quality, service and delivery processes,” said S P Setia.

“This is in order to meet and continually strive to exceed the high expectations of our customers, thereby maintaining the brand loyalty necessary to gain further market share and sustain the unabated growth in annual sales which the group has enjoyed over the past seven years.”  

This article first appeared in The Edge Financial Daily, on June 28, 2013.


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