IJM Corp’s net profit rises to RM65.68 mln in Q1

KUALA LUMPUR, IJM Corporation Bhd’s (IJM Corp) net profit surged to RM65.68 million in the first quarter ended June 30, 2021 (Q1 2022) from RM2.05 million in Q1 2021 due to fewer operational disruptions arising from COVID-19 movement control restrictions.

Revenue surged 48.4 per cent to RM1.30 billion during the quarter under review from RM879.8 million previously, the group said in a filing with Bursa Malaysia today.

In a separate statement, chief executive officer and managing director Liew Hau Seng said certain businesses such as port and toll operations — which were classified as essential activities — were able to continue operating during the lockdown, albeit at lower capacities due to reduced business activities and lockdown restrictions.

He said the construction division’s revenue increased by 31.3 per cent year-on-year (y-o-y) to RM377.5 million, mainly due to higher construction activities, improved gross profit margin and lower finance costs.

Revenue from the company’s property division increased 127.9 per cent y-o-y to RM332.1 million, underpinned by higher construction activities, improved gross profit margin and lower finance cost recorded during the quarter, he said.

“The plantation division reported a 31.9 per cent increase in revenue to RM271.7 million in Q1 2022, mainly due to higher commodity prices recorded by both the Malaysian and Indonesian operations,” he said.

Going forward, Liew said despite operating challenges, the group’s financial performance in the first half of financial year 2022 (1H2022) is expected to be bolstered by a sizeable one-off gain from the disposal of IJM Plantations.

He said the financial performance of the construction, property, industry and infrastructure divisions should recover in 2H2022 when operational activities recommence.

Meanwhile, IJM Plantations Bhd recorded a lower net profit of RM60.06 million in Q1 2022 against RM82.12 million in Q1 2021.

Revenue, however, increased 31.9 per cent y-o-y to RM271.72 million due to higher commodity prices during the quarter.

The fresh fruit bunches production in Q1 was lower y-o-y, mainly due to weather effects on the taller palms, the group said.

Source: BERNAMA News Agency