Fragrance Group's Q1 earnings contract by 32.2% on slower development sales

Bungalows by the Sea, an eight unit development in Sembawang by the Fragrance Group. The real estate firm reported that its first-quarter earnings contracted on the back of lower contributions from its property development and investment segments. --
Bungalows by the Sea, an eight unit development in Sembawang by the Fragrance Group. The real estate firm reported that its first-quarter earnings contracted on the back of lower contributions from its property development and investment segments. -- PHOTO: ST FILE 

SINGAPORE - Real estate firm Fragrance Group reported that its first-quarter earnings contracted on the back of lower contributions from its property development and investment segments.

Net profit for the three months to March 31 fell 32.2 per cent to $16.4 million, down from $24.3 million in the same period last year.

Revenue from continuing operations came in at $87.8 million, down by 21.3 per cent, owing to lower contributions from its property development sector, which saw its revenue drop 20.1 per cent to $83.19 million.

"This was mainly due to the lesser number of ongoing development projects as compared to the first quarter of 2014," said the group in a statement on Thursday.

Projects that contributed to revenue during the quarter included Urban Vista, Kensington Square, Icon @ Pasir Panjang, and Novena Regency.

The group's property investment segment logged a 37.1 per cent decline in revenue, to $87.8 million, as the investment property at Alexandra Road was undergoing asset enhancement work, which commenced in the third quarter of last year.

From continuing operations, earnings per share was at 0.24 cents for the quarter, down from the 0.33 cents previously. Net asset value per share stood at 14.63 cents as at Mar 31, up over the 14.59 cents as at Dec 31 last year.

Fragrance shares closed unchanged at 20 cents. The group announced its results after market close.