MKH Annual Report 2017

Management Discussion and Analysis Report 19 MKH Berhad • Annual Report 2017 The Group’s principal business segments, which remained unchanged from the preceding year, comprise Property Development and Construction; Plantation; Hotel and Property Investment; and Others. The segment “Others” comprises Trading, Manufacturing, Investment Holding and other non-reportable segments operations. 2017 Financial Highlights The Group’s revenue and profit after tax for the financial year under review and the preceding year are summarised as follows: 2017 2016 Change (%) RM'000 RM'000 Group Revenue 1,068,834 1,265,872 (15.6) Segments • Property Development and Construction 702,528 932,007 (24.6) • Plantation 260,538 205,955 26.5 • Hotel and Property Investment 33,878 39,058 (13.3) • Others 71,890 88,852 (19.1) Group Profit Before Tax 193,592 304,669 (36.5) Segments • Property Development and Construction 137,782 199,203 (30.8) • Plantation 14,944 63,117 (76.3) • Hotel and Property Investment 15,075 17,605 (14.4) • Others 25,791 24,744 4.2 Upcoming high rise development Inspirasi Mont' Kiara is designed with an infinity lap pool as part of its resident-exclusive facilities For the financial year ended 30 September 2017, the Group’s revenue and profit before tax declined by 15.6% and 36.5% largely due to lower contribution, both in terms of revenue and pre-tax profit, from the Property Development and Construction division, which decreased by 24.6% and 30.8% respectively. This reduced revenue was, however, mitigated by favourable growth in sales posted by the Plantation division, accounting for a hike of 26.5% largely due to the sustained higher average prices of CPO and Palm Kernel realised and the increase in tonnage sold in respect of CPO. However, pre-tax profits from Plantation recorded a significant drop of 76.3% largely due to unrealised foreign exchange effects and other reasons, further details of which are discussed in the segment performance below. Artist’s Impression