The group attributed the lower profit in Q1 to the significant contribution from its Australia operations upon the handover of Sapphire by the Gardens and UNO Melbourne (Phase 1) in Q4 FY2022.
However, revenue for the quarter rose 11.6% to RM967.67 million against RM867.10 million previously, attributed to its property development segment, it said in a filing with Bursa Malaysia.
No interim dividend was declared for the quarter.
In a separate statement, SP Setia said it achieved commendable sales of RM1.03 billion for the first quarter, where local projects contributed RM903 million, or 87% of sales while international projects contributed RM130 million, or 13% of sales.
In the domestic market, sales secured were largely from the central region at RM546 million whereas the southern region contributed RM285 million.
As of March 31, 2023, the group also secured total bookings of RM512 million and “remains steadfast on the swift conversion of these bookings into sales”.
President and CEO Choong Kai Wai said the first quarter achievement reflected an improvement in a challenging macroeconomic environment and market sentiment.
“With the commendable sales achieved for the first quarter, we are optimistic that we will achieve the sales target of RM4.2 billion set for FY2023,” Choong said in the statement.
Moving forward, SP Setia said its performance is expected to “remain resilient” amid prevailing market conditions and challenges.
This confidence was underpinned by an unbilled sales pipeline of RM7.17 billion, 45 ongoing projects, and an effective remaining landbank of over 3,018 hectares with a gross development value (GDV) of RM128 billion as at March 31, 2023.
The group also plans to launch RM4.89 billion worth of local properties in the central region with a GDV of RM3.83 billion.
This includes new projects from its established developments such as Bandar Setia Alam, Setia Ecohill 1 & 2, Setia Eco Templer, Bandar Kinrara, and Setia Eco Park, as well as the rebranded projects of Setia Alamsari, Setia AlamImpian and Setia Bayuemas.
For the Johor region, launches totalling RM403 million would be rolled out largely from Setia Tropika, Taman Pelangi Indah, Setia Eco Gardens, and Setia Eco Cascadia.
As for the northern region, planned launches worth RM575 million are mainly coming from Setia Fontaines in Bertam and Setia Miracca, a new development planned on Penang island.