MKH Annual Report 2018

19 MKH Berhad Annual Report 2018 MANAGEMENT DISCUSSION AND ANALYSIS REPORT FY2018 FINANCIAL HIGHLIGHTS The Group’s revenue and profit before tax for the financial year under review and the preceding year are summarised as follows: For the financial year ended 30 September 2018, the Group recorded an increase in revenue by 1.2% to RM1.08 billion (FY2017: RM1.07 billion), mainly due to higher sales of building materials by its Building Materials Trading Division. The decline in Group profit before tax (“PBT”) by 34.6% to RM126.7 million (FY2017: RM193.6 million) was mainly due to thinner gross profit margin achieved by the Property Development and Construction Division following the competitive sales rebates o ered to purchasers for certain development projects and coupled with a land donation of RM9.5 million for the establishment of a new secondary school within the vicinity of our ongoing Kajang 2 township. PBT was further reduced by higher unrealised foreign exchange losses of RM36.4 million as compared to the preceding year of RM7.2 million from the Plantation Division following the weakening of Indonesian Rupiah against its borrowings in United States Dollar and Ringgit Malaysia. Further details of the Group's financial performance are discussed in the segments below. 2018 2017 Change RM'000 RM'000 (%) Group Revenue 1,081,701 1,068,834 1.2 Segments • Property Development and Construction 702,687 702,528 Negligible • Plantation 263,197 260,538 1.0 • Hotel and Property Investment 32,957 33,878 (2.7) • Others 82,860 71,890 15.3 Group Profit Before Tax 126,698 193,592 (34.6) Segments • Property Development and Construction 76,565 137,782 (44.4) • Plantation 10,428 14,944 (30.2) • Hotel and Property Investment 11,761 15,075 (22.0) • Others 27,944 25,791 8.3 Artist's impression of high-rise development Inspirasi Mont'Kiara that was launched in February 2018 Steel bars are one of the major contributor to sales revenue of our Building Materials Trading Division 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 operations.