Press Release: Sunway Berhad Reported Profit Before Tax Of RM79.0 Million in 2Q 2021
Sunway City Kuala Lumpur, 24 August 2021 – Sunway Berhad today announced its second quarter financial results (“2Q 2021”) for the financial year ending 31 December 2021.
The Group recorded revenue of RM967.9 million for the current quarter ended 30 June 2021 compared to RM556.6 million in the corresponding quarter in the previous year, representing an increase of 73.9% year-on-year (“y-o-y”). The higher contributions from all business segments in the current quarter resulted in a profit before tax of RM79.0 million in the current quarter, a significant turnaround from a loss before tax of RM0.9 million in the corresponding quarter of the previous year.
The overall improvement in the Group’s financial performance in the current quarter was attributed to the ability of the various businesses being able to adjust and adapt their business operational process to continue to operate, albeit at a lower capacity, during the reinstatement of Movement Control Order (“MCO”) with effect from 1 June 2021. However, the hospitality and leisure businesses under the property investment segment continued to be impacted by the consequences of the MCO.
The Group launched two executive condominium projects in Singapore in February 2020 and January 2021 respectively which were well received and achieved strong take-up rates. Due to the adoption of MFRS 15, their development profits will only be recognised upon completion and handover of the projects. The accumulated progressive profit of these projects amounted to RM17.7 million as at 30 June 2021.
The Group declared a first interim single-tier cash dividend of 1.00 sen per ordinary share for the financial year ending 31 December 2021 and a preferential dividend of 5.25% per annum [based on the issue price of RM1.00 per irredeemable convertible preference shares for the period from 1 January 2021 up to and including 30 June 2021, in respect of the financial year ending 31 December 2021.
Sunway Group Chief Financial Officer, Chong Chang Choong commented, “It is encouraging to note that the mass vaccination rollout has started to ramp-up steadily after the initial slow start. A speedy and successful vaccination programme will enable the domestic economy to reopen faster. The gradual reopening of the economy is expected to gather momentum in the later part of the third quarter and improve further going into the remaining last quarter.”
He added, “We are pleased that the Group has managed to get 95% of its workforce fully vaccinated and is well positioned to capitalise on the anticipated strong recovery in the later part of this year. Barring any unforeseen circumstances, the Group expects the financial performance of the second half of this year to be satisfactory.”
— End Of Press Release —
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