Metro’s H2 profit drops 23% to $6.4 million

SINGAPORE – Metro Holdings’ net profit for the half-year ended March was down 23 per cent to $6.4 million, from $8.3 million a year ago.

This was despite a 3.8 per cent rise in revenue of $65.7 million for the period, reported the mainboard-listed property investment and development group on May 24.

Earnings per share stood at 0.8 cent for the half-year, down from one cent in the corresponding year-ago period.

Share of profit from joint ventures registered a loss of $3.9 million in the second half-year, compared with a gain of $20.4 million. This was mainly due to the group’s share of higher revaluation losses from investment properties and lower operating profit.

Revenue from the property division for the period decreased to $5.9 million from $6.7 million a year ago, led by lower revenue from GIE Tower in Guangzhou, said the company.

For the full year, net profit was down 42.1 per cent to $14.6 million from $25.3 million, on the back of a 1.1 per cent decline in revenue of $115.9 million.

This was due to higher finance cost, share of the loss from associate Top Spring International Holdings as well as lower profits generated by its China properties and the retail division.

“During FY2024, the group’s property division was negatively impacted by the high interest rate environment where it recorded higher finance cost by $4.1 million and higher net fair value losses from the revaluation of investment properties by $23 million, as well as lower operating profits by $8.7 million from the properties in the United Kingdom and Australia,” Metro said.

Continued headwinds in China’s property market resulted in a higher loss from Top Spring by $30.8 million, as well as lower profits generated by the group’s China properties.

This was on top of a lower profit by the group’s retail division, attributable to reduced gross margins and higher costs amid a competitive trading environment.

Metro chairman Winston Choo noted that while its profit has been impacted by prevailing market headwinds, its resilience stems from maintaining a diversified portfolio across asset classes and geographical regions to better navigate the uncertainties. “Our balance sheet remains healthy, and we will proactively manage our existing investment portfolio for optimal returns,” he said.

A final dividend of two cents per share was proposed for the year, down from 2.25 cents the year before from final plus special dividends. This represents a payout ratio of 113.8 per cent. The date payable will be announced later.

Shares of Metro closed on May 24 at 49 cents, up 1.03 per cent, or 0.5 cent.

THE BUSINESS TIMES