Press Release: Glomac Reported Better Earnings With Easing Of Lockdowns
- 2Q FY2022 profit before tax rose 47.2% to RM19.5 million
- Earnings visibility with healthy unbilled sales of RM526 million
- Boosting sales efforts with new launches worth RM216 million in 2H FY2022 as economy re-opens
Glomac Berhad (“Glomac” or “the Group”) today announced unaudited results for the second quarter of its current financial year ending 30 April 2022 (“2Q FY2022”).
For the quarter under review, Glomac reported lower group revenue of RM75.4 million compared to the corresponding quarter in FY2021. However, profit before tax was 47.2% higher at RM19.5 million, aided by improved gross profit margin. Contributing developments include Saujana Perdana, Plaza@ Kelana Jaya, 121 Residences, Lakeside Boulevard and Sri Saujana in Johor.
The quarter performance showed a marked improvement against the preceding 1Q FY2022. Group revenue jumped 161% whilst profit before tax surged 418% as the economy re-opens and Glomac is able to resume construction activities at its ongoing development projects.
Glomac’s balance sheet remains healthy. As at 31 October 2021, net gearing improved to 0.23x from 0.25x at the start of the financial year, whilst cash and cash deposits totaled RM214.5 million, providing ample liquidity to further drive
its development activities. The Group’s net assets per share was slightly higher at RM1.47.
Glomac is looking forward to boosting its sales initiatives as economic restrictions are being lifted and the economy re-opens. The Group is bracing to launch new projects with Gross Development Value (“GDV”) of RM216 million, comprising additional phases of landed residential units in its highly successful townships such as Saujana Perdana, Saujana KLIA and Saujana Jaya in Johor. New launches will also include the debut of Saujana Utama 5 in Sungai Buloh, a new residential township development with an estimated total GDV of RM299 million that is adjacent to the thriving neighbourhood of Bandar Saujana Utama.
Demand for affordable to mid-market landed residential properties remain buoyant and Glomac is confident of positive response for its upcoming new launches. To further enhance its product offerings, Glomac is also embracing the new digital norm with the inclusion of broadband connectivity and work-from home layouts. Previous launches at its existing townships are mostly all sold.
Glomac will continue to spearhead its two-prong marketing strategy, leveraging on its digital marketing platform and its conventional physical sales gallery approach.
Glomac’s near term earnings visibility is well supported by its unbilled sales of RM526 million and the resumption of construction activities. Going forward, the Group remains cautious of overhanging uncertainties from the pandemic that may dampen sentiment, even as optimism grows with the re-opening of the economy.
Nonetheless, Glomac is comfortably holding a portfolio of prime development landbank with potential GDV of about RM8 billion. Given its healthy balance sheet, the Group is able to easily accelerate its development activities and drive
longer term growth when sentiment improves.
— End Of Press Release —
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