Sunway City Kuala Lumpur,25 November 2021
Sunway Berhad (“Group”) today announced its third quarter financial results (“3Q 2021”) for the financial year ending 31 December 2021.
Revenue increased 3.7% year-on-year (“y-o-y”) to RM1,065.0 million in 3Q 2021 compared to RM1,027.2 million in the corresponding quarter of the previous financial year (“3Q 2020”), primarily supported by stronger revenue recorded from property development, healthcare and others segments which more than offset the lower revenue from the other business segments.
The Group recorded profit before tax (“PBT”) of RM113.8 million for the current quarter ended 30 September 2021, from RM156.3 million in the 3Q 2020. The higher PBT in the corresponding quarter of the previous year was mainly due to a one-off gain of RM57.5 million from the remeasurement of leases under Malaysian Financial Reporting Standard (“MFRS”) 16. For comparison, after adjusting for the one-off remeasurement gain, the operating performance of the current quarter was better, which was underpinned by the stronger contributions from property development, healthcare and others segments.
Pursuant to the adoption of MFRS 15, it should be noted that development profit on two of the Group’s property development projects in Singapore will only be recognised upon completion and handover of the projects. As at end of the current quarter, the accumulated progressive profits of these projects amounted to RM40.0 million, of which RM22.3 million was recorded in the current quarter, was not recognised.
Sunway Berhad Chief Financial Officer, Chong Chang Choong commented, “With the infection rates starting to trend downwards on the back of the successful mass vaccination roll-out and the strict SOP compliance, the Group expects business recovery to strengthen further in the fourth quarter as most economic activities have resumed, especially social and local tourism-related activities. This augurs well for the Group, particularly our leisure and hospitality operations.”
He added, “The Group expects the financial performance for the last quarter of the year to improve against the current quarter.”