Record-high nine months revenue
Petaling Jaya, 24 November 2023: Paramount Corporation Berhad recorded a profit before tax (PBT) of RM31.7 million in 3Q2023 on the back of a RM266.8 million revenue that was 15% higher than that of the previous period.
The 3Q2023 PBT was, however, 24% lower than the same period last year (3Q2022: RM41.9 million) mainly due to the absence of the RM15 million net gain from the Group’s sale of non-core assets in 3Q2022. Accordingly, the group’s profit attributable to shareholders at RM18.9 million was also 30% lower compared to that of 3Q2022 of RM27.2 million.
Paramount Group CEO Jeffrey Chew said, “The Group’s 2023 third quarter financial performance was in fact better than the same period last year, if the sales of the non-core assets were excluded in 3Q2022.”
“Both Paramount’s property and coworking divisions had shown steady growth year on year in 3Q2023.”
“The property division recorded a 14% higher revenue at RM256.5 million (3Q2022: RM225million) and a 21% higher PBT at RM37.7 million (3Q2022: RM 31.2 million),” he said.
The leading revenue contributors were Sejati Lakeside and Sejati Lakeside 2 developments in Selangor and Utropolis Batu Kawan development in Penang.
“Paramount’s coworking division continued to flourish and registered a 47% increase in revenue in 3Q2023 at RM3.4 million. It enjoyed its third quarter of profitability and PBT stood at RM0.5 million (3Q2022: loss before tax [LBT] of RM0.2 million),” said Chew.
9M group performance
Chew described Paramount’s nine-month results for FY2023 as encouraging with revenue and profitability achievements being better than the nine months of the previous year.
“The revenue of RM702.9 million is a record high (for nine months) in Paramount’s history. It clearly demonstrates that we have fully recovered from the pandemic, and filled the gap created by the divestment of the education businesses,” he said.
Group revenue improved by 17% to RM702.9 million (9M2022: RM602.2 million) in the first nine months of 2023 while PBT improved by 27% to RM91.9 million (9M2022: RM72.1 million) despite the RM15 million non-recurring net gain that was recognised in the previous year. The Group’s profit attributable to ordinary equity holders was 32% higher at RM54.6 million (9M2022: RM41.3 million).
Chew said the Group’s financial performance is expected to be satisfactory in the remaining quarter of the financial year to deliver a year of solid growth.
9M property performance
For 9M2023, the property division achieved a 15% improvement in revenue at RM674.6 million (9M2022: RM586 million). On the back of higher revenue coupled with savings from the finalisation of project costings, PBT grew by 54% to RM108 million compared to RM70.3 million in 9M2022.
Property sales was RM909 million for the first nine months of 2023, an increase of 32% from RM691 million gross development value of the same period in 2022.
Chew said the demand of the Group’s existing products is expected to be resilient for the rest of the year.
The Group’s unbilled sales stayed strong at RM1.5 billion, as at 30 September 2023.
9M coworking performance
The coworking division’s revenue for the first nine months of 2023 was 45% higher at RM9.6 million (9M2022: RM6.6 million) mainly attributed to higher revenue from all its five Co-labs Coworking spaces, and its design, build and manage solutions business, Scalable Malaysia. With higher revenue, the coworking division’s PBT improved to RM1.1 million (9M2022: LBT of RM0.5 million).
Chew said, “Co-labs Coworking is scaling up its operations by about 52,000 sq ft in November and December 2023, to reach 167,000 sq ft, making Co-labs Coworking one of the top five coworking space providers in Malaysia in terms of size.”
“In November 2023, Co-labs Coworking expanded its footprint at Tropicana Gardens mall space by 37% as that space had reached close to full occupancy.
“In terms of new locations, Co-labs Coworking took over an existing coworking space at Menara Ken TTDI at Taman Tun Dr Ismail, Kuala Lumpur in November 2023, while the space at The Five at Damansara Heights, Kuala Lumpur is targeted to open in December 2023,” Chew said.