SINGAPORE (Feb 28): Thakral Corporation reported a 93% fall in FY16 earnings to $0.4 million compared to earnings of $6.1 million in FY15 which was boosted by an unrealised valuation gain of $9.9 million mainly from its warehouse properties in Hong Kong.
The group reported a net profit before tax of $4.2 million on revenue of $214.9 million in FY16. The group’s gross profit rose to $45.2 million, up 37% from $33.1 million the previous year. Gross profit margin doubled to 21% from a year ago.
Overall group turnover for FY16 was lower by 35% from $331.3 million a year ago. This was due to a 42% reduction in sales to $178.6 million in the group’s lifestyle division. The division had started moving away from certain low margin business during the year and had also faced supply constraints for certain mobility products from 3Q16.
The group’s investment division reported $36.2 million in revenue, a growth of 51% over the previous year. This was the result of the recognition of returns from ongoing projects as well as the completion of the Vida project in Brisbane, Australia, which achieved over 94% in the settlement of contracted units while the Portavilla and Residences townhouse projects in Brisbane achieved 100% settlement rate.
Operating profit rose to $17.7 million for the year compared to $2.6 million the previous year.
Distribution expenses declined 20% to $8.3 million from $10.3 million a year ago.
Shares of Thakral closed 2 cents higher at 26 cents.
