SINGAPORE (July 26): United Industrial Corporation (UIC) saw its earnings more than treble to $409.3 million for the 2Q19 ended June, from $111.1 million a year ago.
This was due to the one-off gain of $272.8 million during the quarter, due to the de-recognition of Aquamarine Hotel (AHPL) as an associated company.
Following the acquisition of an additional 24.27% interest in Marina Centre Holdings (MCH), and MCH’s acquisition of an additional 25% stake in AHPL, UIC owns 57.82% of AHPL, which is now accounted as a subsidiary of the group.
See: United Industrial Corp raises stake in Marina Centre to 77.34% with $675.3 million deal
Including fair value gains on investment properties, which trebled to $135.0 million during the quarter, earnings per share (EPS) jumped to 28.6 cents in 2Q19, compared to 7.8 cents in 2Q18.
2Q19 revenue rose 20% to $218.7 million, from $182.5 million a year ago. This was mainly due to higher sales recognition from trading properties, hotel operations and technology operations.
Gross profit climbed 6% to $81.0 million in 2Q19.
Mainly due to the consolidation of AHPL, selling and distribution costs increased 33% to $8.4 million, administrative expenses rose 25% to $9.2 million, and finance expenses more than doubled to $5.8 million.
As at end June, cash and cash equivalents stood at $290.1 million.
Looking ahead, UIC says its bottom line will benefit from the acquisition of additional stakes in Marina Square and Marina Mandarin Hotel via MCH and AHPL respectively.
However, it notes that the group’s operations and investments are likely to be impacted in the medium- to long-term due to global macroeconomic uncertainties.
Shares in UIC closed 2 cents higher at $2.95 on Friday.
