IGB’s fourth quarter earnings down 14.3%

PETALING JAYA: IGB Corp Bhd reported a 14.3% drop in net profit to RM43.99 million for the fourth quarter ended Dec 31, 2016 from RM51.31 million in the same quarter a year ago, due to higher taxes and administrative expenses.
Revenue declined marginally by 0.6% from RM284.62 million to RM282.87 million, owing to lower contributions from the property development, property investment – commercial and hotel divisions.
The group has proposed to declare an interim dividend of 5 sen per share for the quarter under review.
IGB’s full-year net profit, however, rose 37.4% from RM216.9 million to RM297.99 million on the back of a 1.4% drop in revenue from RM1.17 billion to RM1.15 billion.
While revenue contribution from the property development division decreased 40% to RM93.6 million and property investment – commercial division – fell 4% to RM122.9 million, these decreases were mitigated by higher contribution from the other operating divisions, namely property investment – retail, hotel and investment divisions, which stood at RM493.5 million, RM379.7 million and RM60.6 million, respectively.
In a filing with the stock exchange, IGB said it expects 2017 to continue to be a challenging year in view of the uncertainties in the global as well as local economic climate.
It is cautiously optimistic that its performance in FY2017 will be satisfactory.