KUALA LUMPUR: Eastern and Oriental Bhd (E&O) has returned to the black in the first quarter for the financial year ending March 31, 2024 (Q1 FY2024) with a net profit of RM32.95 million.

The profit marked an increase of over 20 times from the group’s RM1.65 million net loss in Q1 FY2023. The drastic increase was largely due to enhanced revenue and unrealised foreign exchange gain, according to the company.

In a filing with Bursa Malaysia today, the property developer said its revenue rose by 11.6% to RM85.41 million from RM76.55 million a year ago, mainly attributed to the sales of Arica on Andaman Island in George Town, Penang.

The increase in revenue was contributed largely by the properties and hospitality segments, which posted a RM3.6 million and RM5 million increase respectively.

E&O managing director Kok Tuck Cheong said the strong take-up rates of two newly launched properties on Andaman Island – namely The Meg and Arica – reflect its strong track record and brand image as a lifestyle developer.

“Likewise, our hotels in Malaysia and London are experiencing higher occupancy rates, coupled with a higher demand for our banquet services for corporate and private events,” he said at the Q1 FY2024 results briefing here today.

He also foresees an upturn in the Malaysian real estate market, particularly in prime locations. This positive outlook is complemented by a steady recovery in the tourism sector, fuelled by an increase in hotel reservations.

“We are cautiously optimistic that we will be able to execute our plans and strategies to bring the group to greater heights with the launch of our new product offerings, which is already in the pipeline, and the launches expected in Q4 FY2024,” he said.

Meanwhile, executive chairman Tee Eng Ho said the current total gross development value for its ongoing projects stand at RM2.47 billion with five projects, namely The Meg, Conlay, The Peak, Arica and Avira Phase D.

“No dividend was declared for Q1 FY2024 and we do not foresee any dividend declaration this year as we are focused on the Andaman Island project,” he said.

Tee added that the company plans to launch a mix of landed and serviced apartment units in Phase 1 of Andaman Island in the third and fourth quarter of the financial year.

As at 4.59pm, E&O’s share price was up by 3.5 sen or 8.43% at 45 sen, giving it a market capitalisation of RM700.83 million.