SINGAPORE (Aug 6): Thakral Corporation reported earnings of $1.8 million in 2Q19 ended June, 7% higher than the earnings of $1.7 million in 2Q18.
This brought 1H19 earnings ended June to $2.8 million, 31% lower compared to earnings of $4.0 million in 1H18.
For 1H19, revenue came in at $50.4 million, 40% lower than $84.1 million a year ago.
The group’s investment division saw lower revenue contribution due to the absence of income in relation to completed or sold-down projects that had been recognised a year ago. The investment division has also been cautious in taking up new housing projects due to the slowdown in the Australian housing market.
The lifestyle division also saw lower revenue contribution due to difficult market conditions including weaker consumer demand in China.
With cost of sales declining 44% to $33.1 million, gross profit for 1H19 came in at 17.3 million, 31% lower than $25.2 million in the previous year.
Distribution costs increased 22% to $4.4 million, while administration expenses remained flat y-o-y at $8.5 million and other operating expenses dropped 21% y-o-y to $0.3 million.
During the period, the group recorded valuation gain on asset held for sale of $3.5 million, which was absent in the corresponding year.
As at end June, Thakral’s cash and cash equivalents stood at $4.2 million
The board has declared an interim dividend of 2 cents per share, which will be payable on Aug 30.
Natarajan Subramaniam, independent non-executive chairman and lead independent director of Thakral, says, “Our strong portfolio of investments especially in Japan and Australia, which helped mitigate the impact of severe headwinds over the past months, will remain a strong contributor for the group in the coming months.”
“We continue to invest in our Lifestyle Division to sign on more brands and strengthen its capability. This division will also be accelerating its e-commerce initiatives via its joint venture company, CBT At-Home Beauty Holdings to capitalise on the surging popularity of online sales in China. We will continue to scout for good market opportunities to drive growth while remaining prudent in managing business risks amid volatile global economic conditions,” adds Subramaniam.
Shares in Thakral closed at 44 cents on Tuesday before the announcement.
