GuocoLand has announced that its earnings for FY2021 ended June came in 48% higher at $169.1 million, compared to $114.1 million in FY2020, thanks to the group's efforts to cut overall expenses and costs.
Revenue for the period was 9% lower at $853.7 million from $934.8 million a year ago, mainly due to lower progressive recognition of sales from the Singapore residential projects. This was mainly from Martin Modern as its sales and construction reaches its tail end during the financial year. Martin Modern obtained its Temporary Occupation Permit (TOP) in May 2021.
The lower contribution from Martin Modern was partially offset by higher progressive recognition of sales from the other Singapore residential projects and higher contribution from projects in Malaysia. Meanwhile, revenue from the group’s investment properties decreased marginally and revenue from hotels fell by approximately 65%.
Gross profit margin for the group remained stable at approximately 30%.
As cost of sales declined by 8% y-o-y to $585.3 million, gross profit for FY2021 came in 10% lower y-o-y at $268.4 million.
Other income was 13% lower y-o-y at $138.9 million.
The group had managed to cut its overall expenses and costs, as administrative expenses were 15% lower y-o-y at $75.1 million, other expenses declined by 93% to $9.5 million, while finance costs dropped 12% to $95.7 million.
Share of profit of associates and joint ventures also declined by 39% y-o-y to $95.7 million.
As at end-June, cash and cash equivalents stood at $1.12 billion.
The board has declared a first and final dividend of 6 cents, unchanged from the preceding year.
Cheng Hsing Yao, CEO of GuocoLand says, "We remain committed to delivering sustainable shareholder returns, and are poised to capture strategic opportunities."
"The group has steadfastly created a brand based on quality and innovative products. Besides our high-end residential developments, we are also known for our integrated mixed-use developments that uplift their respective neighbourhoods. Going forward, we will leverage our development and asset management capabilities to identify and seize more opportunities, and create value for shareholders," he adds.
Shares in GuocoLand closed at $1.62 on Aug 26.