E&O's net profit rises to RM45.42mil in 1Q

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) registered a strong start to the year with higher contributions from both its property and hospitality businesses.

"We are delighted to start FY26 with a commendable performance. We continue to see positive interest from local buyers, complemented by foreign purchasers, particularly for our developments in the Klang Valley and on Andaman Island, Penang," said managing director Kok Tuck Cheong in a statement.

During the first quarter of 2025 (1QFY25), E&O posted a net profit of RM45.42mil, up from RM37.52mil in the year-ago quarter. 

Earnings per share dipped to 1.82 sen from 1.84 sen in the comparative quarter.

The group reported revenue of RM183.51mil as compared to RM165.65mil in the year-ago quarter. 

By segment, the group said property remained its main growth driver, charting a 12% year-on-year (y-o-y) increase in revenue to RM157.1mil. The segment's operating profit rose 9% to RM57.4mil.

The hospitality segment, meanwhile, recorded 6% y-o-y revenue growth to RM25.1mil during the quarter while operating profit rose 10% y-o-y to RM4.8mil,  underpinned by higher average room rate and occupancy rate at the E&O Hotel in Penang.

"We remain excited as we progress towards our launch target of over RM2bil, which includes the upcoming launches of Elmina Retail Shops, Elmina Landed Homes, Senna and Fera as well as Andaman Island Plot 16E," said Kok.

He added that the recent disposal of land parcels in London aligns with its strategy to preserve capital value while strengthening the balance sheet through the realisation of cash resources.

"This prudent move enhances the group’s financial flexibility and better position us to capitalise on future growth opportunities.”