Commercial & Industrial Property News Update

Singapore - Q2 Net Profits Drop For Fragrance Group

August 7, 2012

Hotel chain operator Fragrance Group Limited reported weaker results for Q2 2012 despite an increase in turnover for the quarter.

Fragrance Group Limited said that although there was a marked increase in turnover, its results weakened for the second quarter of the year. Net profit for the period was posted at SGD 21.26 million, representing a q-o-q decline of some 9.65%.

Turnover for the group increased to SGD 102.55 million, representing a 22.6% growth y-o-y. This was mainly attributed to its property sector, which contributed 85.2% in turnover. At the same time, Fragrance Group also realised healthy income from its various projects.

However, its property sector also suffered a significant 35.3% decline in gross profit margin y-o-y.

Also declining was gross profit margin of the group's hotel business arm, which fell to 86.5% from the 87.8% seen last year. This means that contribution from the hotel arm only accounted for 14.8% this quarter.

However, earnings-per-share crept up slightly from 0.7 cent to 0.8 cent.

Year-to-date, Fragrance Group's net profit improved by 14.68% to SGD 43.36 million, with a 45.2% increase in turnover to SGD 196.81 million. Overall, gross profit surged by 40.2% to reach SGD 86.65 million.

In other news, Millennium & Copthorne Hotels Plc (M&C Hotels) saw headline profits grow by 31% for H1 2012 on the back of stronger growth in Asia.

M&C Hotels' headline pre-tax profit increased to GBP 78.3 million (SGD 151.79 million), while revenue inched up one percent to GBP 373.9 million (SGD 724.89 million).

Higher prices also helped to pull up revenue per available room (RevPAR) by 5.2%.


Tags: Commercial real estate, Income properties

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