KUALA LUMPUR (Nov 19) : BCB Bhd’s net profit for the first quarter ended Sept 30, 2020 (1QFY21) fell 56.34% to RM5.92 million from RM13.55 million a year ago, dragged by lacklustre property sales.

The Johor Baru-based property developer told Bursa Malaysia that its revenue for 1QFY21 had dropped by 27.07% to RM76.66 million, from RM105.12 million.

The group said its property development segment revenue declined to RM72.46 million from RM102.03 million, impacted by lacklustre sales and additional time required to complete the projects during the movement control order period.

“In line with the decrease in revenue, the group registered a decrease in profit before tax of RM 11.03 million,” it said.

Although its construction segment reported an increase in revenue, the division incurred a loss of RM1.9 million, due to the additional cost provision in respect of the current Covid 19 pandemic.

The unprecedented pandemic has adversely impacted the property market, the group said.

“With the imposition of border travel restriction, economic activities have been affected significantly and the duration of the outbreak is highly unpredictable in the absence of a safe and effective vaccine.

“Despite the various measures taken by the government to contain and defeat the pandemic, consumer sentiments remain weak and fragile, as the pandemic is still evolving with all the attendant uncertainties,” it said.  

For financial year 2021, the group said it will remain vigilant by being cautious in launching new products.

At the time of writing, its shares were trading unchanged at 31.5 sen apiece, valuing the group at RM129.94 million.