SINGAPORE (Aug 2): Thakral Corporation reported a 50% rise in 1H18 earnings to $4 million compared to its earnings of $2.7 million a year ago. This came on the back of strong revenue growth from both its core businesses, investment and lifestyle.
For the 2Q ended June, Thakral posted $1.7 million in earnings, up 45% from $1.2 million in 2Q17.
Revenue for 1H18 grew 18% to $84.1 million from $71.4 million in the previous year.
The group’s Investment Division achieved a half-year revenue of $19.1 million, which is 41% higher than the $13.5 million booked in 1H17 after including a fair valuation gain of $1 million arising from Japanese investments.
In Australia, the division clocked a steady flow of settlements from completion of projects. It also saw increased deposits and contracted sales at its GemLife Bribie Island, while most of the payback of the group’s investment for the Newstead and Grange projects are expected to be received this year.
Thakral also saw a fair valuation gain of about $1 million for the half-year from its property investments in Japan, with two hotels and two commercial buildings fully occupied and the new 70%-occupied Legal Itachibori office building due to commence renovation in 4Q19.
Meanwhile, the Lifestyle Division achieved sales of $65 million, up 12% from $57.8 million a year ago. It however sank into an overall loss of $0.8 million for 1H18 due to the clearance of write-down of inventories, which resulted from unexpected price declines for certain products.
“We need to be nimble but cautious as the global economy remains challenging due to the ongoing trade tensions between the US and its major allies and China. Regulatory, credit, economic and supply issues are at play to tighten supply and weaken demand in Australia, which will exert pressure on residential real estate,” comments Natarajan Subramaniam, independent non-executive chairman of Thakral, on the group’s outlook.
In view of the ongoing trends affecting countries which Thakral operates in, Subramaniam adds that Thakral will continue to scout for good market opportunities to drive growth, but will remain prudent in managing business risks amid volatile global economic conditions.
Shares in Thakral closed 4 cents lower at 44 cents on Thursday.
