SINGAPORE (Nov 13): Koh Brothers Group has announced $5.1 million in earnings for 3Q17, up 18.4 times from its earnings of $0.3 million a year ago on a one-off disposal gain registered over the quarter.
Sales for 3Q17 grew 41% to $89.8 million from $63.7 million previously, due primarily to higher contributions from the Construction & Building Materials division. However, due to lower gross profit margins from this division, group gross profit fell 66% to $1.8 million compared to $5.2 million previously.
Other gains of $11.1 million were recorded over the quarter from the net gain on disposal of a joint venture.
Meanwhile, distribution expenses grew to $2.05 million from $0.12 million a year ago due to allowance made for impairment on trade receivables, while administrative expenses grew to $7.8 million from $4.3 million a year ago on increased legal & professional fee and higher staff costs.
Share of profit from associated companies and joint ventures increased by 15% to $1.21 million from $1.1 million in 3Q16, mainly due to higher profit contributed by Sun Plaza.
For the nine months ended Sept, the group’s earnings grew 21% to $7.7 million from $6.3 million a year ago, while gross profit fell 42% to $7.8 million from $21.1 million in 3Q16.
Noting that the construction sector remains challenging on the back of a competitive environment, Koh Brothers says it is well-positioned to continue tendering for larger construction projects, given its status as an established building and civil engineering contractor as well as its emphasis on safety, productivity and quality.
Shares in Koh Brothers closed 1 cent higher at 38 cents on Monday.
