KUALA LUMPUR (Feb 28): Eastern & Oriental Bhd's (KL:E&O) net profit declined 10% for the third financial quarter from a year earlier as higher tax expenses overshadowed a sharp rise in revenue.

Net profit for the three months ended Dec 31, 2024 (3QFY2025) was RM30.9 million, according to an exchange filing on Friday. Tax expense more than doubled to RM12.43 million during the period mainly due to certain items not being tax deductible, the company noted.

Revenue for the quarter surged 82% year-on-year to RM167.74 million thanks to strong sales of The Lume, as well as the continued revenue recognition from other ongoing projects, including The Meg, Fera, and Senna.

E&O said the company is now in the final stages of planning for the third and fourth phase of the Senna and Fera landed home projects. The phases, comprising 50 terraced homes and 18 semi-detached units, are targeted for launch in April-June 2025.

“These projects will further strengthen our portfolio and reinforce our commitment to create sustainable and vibrant communities,” said E&O managing director Kok Tuck Cheong.

Net profit for the nine-month period meanwhile inched up less than 2% to RM98.8 million. The company blamed unrealised foreign exchange loss for cutting into a 67% year-on-year rise in revenue to RM504.4 million during the nine months of FY2025.

The company booked foreign exchange losses totalling RM45 million during the period versus a RM37.8 million gain in the previous corresponding financial period. Both the loss and gain were unrealised, meaning that they were non-cash paper losses.

E&O, which also has a hospitality division, said it anticipates continued demand for its offerings in the final quarter of FY2025 following a spike in tourist arrivals that led to higher occupancy and strong room rates at its eponymous hotel in Penang.

Shares of E&O were down 2.5 sen or 2.9% at 83 sen, valuing the company at RM2.09 billion ahead of the results announcement.