SINGAPORE (Apr 26): Thakral Corporation reported a 54% jump in 1Q18 earnings ended March to $2.3 million from a year ago on the back of a 9% rise in group revenue to $40.3 million.
Thakral says the group’s robust performance comes with improvements from both its core business divisions.
The Investment Division of the group posted a growth of about 32% in revenues to $9.5 million from $7.2 million a year ago.
The group received the bulk of the settlements from the Fortitude Valley project in Brisbane during the quarter. Further settlements are expected this month and the remainder during the year. The funds received will be deployed mainly for GemLife retirement housing projects.
The GemLife joint venture has started recognising revenue from the Bribie Island retirement homes project in 4Q17 as buyers start moving into their properties.
The Lifestyle Division, which supports foreign beauty, wellness and lifestyle brands, registered higher sales of $30.9 million for the quarter compared to $29.7 million a year ago.
The division cut its losses to $0.1 million and is actively improving its online sales as well as through traditional channels. It is also in discussion with suppliers to add new brands to strengthen the product portfolio in China and Hong Kong.
Operating profit rose 46% to $6.5 million with the group’s consolidated margin rising to 31.9% from 28.6% previously.
Gross profit also went up 22% to $12.9 million which included fair value gains of $0.6 million on investments.
There was a forex loss of $0.3 million compared to a forex gain of $0.3 million last year.
In its outlook, Thakral says its key markets remain sound although prospects could be clouded by challenges posed by the looming trade dispute between the US and China.
In recent months, conditions in Australia’s established housing market have cooled. Housing prices in Sydney have declined slightly. Conditions in Melbourne have eased following several years of strong price growth and conditions in most other capital cities remain subdued.
The group has proposed an interim dividend of 2 cents each.
Shares in Thakral closed 11 cents higher at 54 cents on Wednesday.
