Malaysian Resources Corporation Berhad (MRCB) recorded an 82% increase in Revenue to RM425.8 million and a 219% increase in Profit Before Tax to RM26.9 million in the first three months of 2020, compared to the corresponding period in 2019.
The higher Revenue and Profit was mainly due to the commencement of revenue recognition from the Group’s 1060 Carnegie development in Melbourne upon the handover of units to purchasers, and further construction progress and revenue recognition from the Sentral Suites development in KL Sentral.
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Commenting on the results, Imran Salim, Group Managing Director said, “These stronger results are in line with our earlier announced expectations of stronger revenue recognition as construction progresses at our key property projects. However, as these results cover only the initial part of the MCO, we anticipate a significantly weaker performance in the second quarter.
Although work has now slowly resumed at all our construction sites, we believe the outlook for the economy and the property market will remain challenging for the foreseeable future and we have embarked on austerity and cost-cutting measures to mitigate the impact.”
The Property Development & Investment Division recorded a 178% increase in Revenue to RM236.4 million and a 6-fold increase in Operating Profit to RM20.6 million in the Q1 2020, compared to RM85.1 million and RM3.0 million respectively in the corresponding period in 2019.
The increase was mainly due to the commencement of revenue recognition from 1060 Carnegie, upon the settlement and handover of purchased units following its construction completion in December 2019, as well construction progress at Sentral Suites in KL Sentral, which saw a 3-fold increase in revenue recognition to RM56.4 million compared to RM17.3 million in the corresponding period in 2019. The Division sold RM36.3 million worth of properties in Q1 2020 and recorded unbilled property sales of RM1.3 billion.
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