Property firm GuocoLand yesterday reported a 42 per cent fall in fourth-quarter net profit to $107.3 million.
Revenue slumped 48 per cent to $254.7 million in the three months to June 30 from a year ago, mainly owing to lower revenue recognised for China projects.
Despite the drop in revenue, the firm said gross margin rose to 41 per cent, compared with 30 per cent a year ago, thanks to a change in sales mix.
Other income declined 37 per cent to $81.1 million in the fourth quarter, largely owing to lower fair value gain recognised for investment properties.
Administrative expenses fell from $25.1 million to $21.2 million, thanks to lower operating costs for Singapore's operations.
AT A GLANCE
$107.3 million (-42%)
$254.7 million (-48%)
DIVIDEND PER SHARE:
5 cents (unchanged)
Finance costs were also down, dropping 21 per cent, mainly due to higher capitalisation of interest expenses during the quarter.
The firm also noted that the share of results of associates and joint ventures fell by $14.4 million, owing to profit recognised for completed developments in Malaysia in the same period a year ago.
GuocoLand said that Malaysia recognises sale revenue on a completed basis.
The company added: "The group expects operating conditions to remain challenging and will continue its focus on sales and leasing of its current projects, while remaining watchful of investment opportunities."
Net profit for the 12 months to June 30 fell 26 per cent to $226.4 million, while full-year revenue slipped 7 per cent to $1.2 billion from a year ago.
Quarterly earnings per share fell to 9.45 cents from 16.55 cents previously, while net asset value per share was $2.65 as at June 30, up from $2.36 a year ago.
GuocoLand kept its dividend unchanged at five cents a share.