Metro sees jump in Q4 profit on writeback, higher revenue; full-year earnings fall 28.7%

Retailer, property and investment group Metro Holdings reported a fourth-quarter net profit of S$34.2 million compared to S$1.2 million for the year-ago.
Retailer, property and investment group Metro Holdings reported a fourth-quarter net profit of S$34.2 million compared to S$1.2 million for the year-ago.PHOTO: ST FILE

SINGAPORE - Retailer, property and investment group Metro Holdings reported on Tuesday (May 30) fourth-quarter net profit of S$34.2 million compared to S$1.2 million for the year-ago period, after a $$30.2 million share of a tax provision writeback by associate Top Spring International Holdings.

As a result of that writeback, share of results of associates increased to S$20.1 million in the quarter from S$8 million a year ago. At the operating level, Top Spring reported lower recognition on handover, of sales of properties.

Group revenue for the three months to March 31 rose by 3.5 per cent to S$33.7 million as the retail division reported higher sales. However, gross profit for the quarter fell 17 per cent to S$2.8 million due to higher operating expenses.

For the full year, earnings fell 28.7 per cent to S$80.7 million from S$113.1 million the previous year. The results were affected by a S$33.1 million fall in share of results of associates from lower sales recognition relating to its Nanchang project and Top Spring, and the absence of a one-off gain of S$38.1 million from the disposal of the EC Mall in Beijing in FY2016.

Metro said that sales of its Singapore residential project - The Crest at Prince Charles Crescent - is expected to be sluggish given the weak market sentiment.

The board has recommended dividends totaling 5 Singapore cents per share, comprising an ordinary final dividend of 2 cents and a special dividend of 3 cents.