SINGAPORE (Dec 12): Logistics, real estate, and financial services provider Vibrant Group saw its earnings fall 60.4% to $3.6 million for the 2Q ended October, from $9.0 million a year ago.
This comes despite revenue almost quadrupling to $172.7 million in 2Q18, compared to $45.0 million a year ago.
In a Tuesday night filing, Vibrant says the weaker bottomline was due to lower fair value gain on marketable securities and lower share of profits from associates.
The surge in revenue was mainly contributed by Blackgold International Holdings (BILH), which was acquired in July 2017.
Gross profit increased 31.5% to $20.1 million in 2Q18, as gross profit margin plunged to 11.6% during the quarter, from 34.0% a year ago. This was mainly due to the acquisition of BIHL, which had a gross profit margin of only 5.0%.
Other income fell by 39.4% to $4.7 million in 2Q18, from $7.7 million a year ago, mainly due to absence of gain on disposal of a subsidiary and lower fair value gain on marketable securities.
Share of profits of associates fell 71.0% to $1.1 million in 2Q18, from $3.8 million a year ago, mainly due to disposal of Plaza Ventures.
As at end October, cash and cash equivalents stood at $68.2 million.
Looking ahead, the groups says it will continue to exercise prudence and adopt a conservative approach in relation to investment opportunities given the global economic conditions.
Shares of Vibrant Group closed half a cent lower at 38 cents on Tuesday.
