Paramount posts RM6.4 mil PBT in 3Q2021 under challenging conditions

Petaling Jaya, 25 November 2021: Paramount registered a profit before tax (PBT) of RM6.4 million (3Q2020: RM37.1 million) in 3Q2021. This is on the back of a 61% drop in revenue to RM84.8 million compared to RM218.9 million for the corresponding quarter last year

The group’s financial performance in 3Q2021 was adversely affected by measures to curb the COVID-19 virus, which led to lower levels of construction activities and lower property sales.

For 9M2021, the Group recorded a PBT of RM27.4 million (9M2020: RM38.6 million) on a revenue of RM364.0 million (9M2020: RM405.2 million).

Property division
For 3Q2021, the property division posted a PBT of RM7.1 million (3Q2020: RM38.8 million) on the back of RM83.1 million in revenue (3Q2020: RM216.5 million).

For 9M2021, PBT was marginally higher at RM42.9 million (9M2020: RM39.8 million) while revenue was 10% lower at RM357.9 million (9M2020: RM398.5 million). The marginal increase in PBT was mainly due to the lower interest expense and without the impairment loss of an investment property that was recognised in 3Q2020. The top three revenue contributors for 9M2021 were Bukit Banyan in Kedah, Utropolis Batu Kawan in Penang, and ATWATER in Selangor.

Property sales for the first nine months of this year stood at RM354 million (9M2020: RM503 million), a decline of 30% mainly due a sharp drop in sales in the third quarter caused by prolonged movement controls that delayed sales conversion and approvals for new launches. Sales galleries were also closed.

Coworking division
For 3Q2021, the coworking division recorded a revenue of RM1.1 million, which was 20% lower than the corresponding quarter last year (3Q2020: RM1.3 million) while loss before tax (LBT) was unchanged at RM0.9 million. The lower revenue was mainly due to the higher rental rebates given to eligible members as only certain businesses were allowed to operate during the imposed movement restrictions.

For 9M2021, revenue was 17% higher at RM3.7 million (9M2020: RM3.2 million) mainly attributable to its new outlet at Tropicana Gardens, Kota Damansara as well as the maiden contribution from its design and build arm, Scalable Malaysia.  LBT for 9M2021 was however unchanged at RM3.3 million compared to corresponding period last year.

Paramount Group CEO Jeffrey Chew said the Group is hopeful to regain the strong sales momentum that was disrupted in 3Q2021 with the reopening of the economy.

He added that the low interest rate environment coupled with the stamp duty exemption under the home ownership campaign would continue to incentivise property purchase.

“In November, we launched The Atrium, an attractively-priced service apartments located at the prestigious Ampang Hilir junction in Kuala Lumpur, also known as the Embassy Row. The Atrium carries a Gross Development Value (GDV) of RM202 million.

“We have also just launched the third and final phase of Sejati Lakeside at Cyberjaya. The final phase with GDV of RM248 million will comprise of semi-detached, super link and terrace houses. Earlier phases are sold out.”

“With the vaccination of our workers, all our construction sites are now operating at 100% workforce capacity with standard operating procedures in place to minimise the risks of workplace infections.”

He also said that with all five of Co-labs Coworking reopened, the business would be able to capitalise on the opportunities in this new normal.