SINGAPORE (Aug 8): Property developer Fragrance Group posts a 3.1% increase in earnings to $3.8 million for the 2Q ended June, from $3.7 million a year ago.
This was mainly due to taxation amounting to $1.2 million in 2Q17, compared to a tax credit of $2.4 million in the quarter last year due to an adjustment of the estimated tax provision.
Revenue grew 14.0% to $35.0 million in 2Q17, from $30.7 million a year ago.
The increase in revenue was led by its property investment segment, which saw revenue grow 22.8% to $5.5 million in 2Q17. This was the result of higher rental income from higher occupancy at Fragrance Empire Building and Victory Centre.
In addition, the group saw revenue contribution of $2.6 million from its new hotel segment, on the back of the newly-acquired The Imperial Hotel in the UK.
Revenue from its property development segment edged up by 2.5% to $26.9 million in 2Q, from $26.2 million a year ago.
Overall gross profit in 2Q increased by 32.7% to $14.5 million, as gross profit margin rose 5.9 percentage points to 41.6% mainly due to the higher margin contributed by the hotel operation and the City Gate project.
As at end June, cash and cash equivalents stood at $30.9 million.
Looking ahead, Fragrance says it has laid a good foundation for sustainable growth in future years, with the timely diversification of operations into Australia and the UK.
Shares of Fragrance Group close 0.1 cent higher at 16.8 cents on Tuesday.
