SINGAPORE (May 14): Roxy-Pacific reported 1Q18 earnings increased 19% to $7.0 million, compared to $5.91 million in 1Q17.

Revenue came in at $46.4 million, 29% lower than $65.4 million a year ago, mainly due to lower contribution from the Property Development and Property Investment segments, partially offset by higher revenue from Hotel Ownership segment.

Revenue from Property Development dropped 39% y-o-y to $31.8 million, largely due to lower revenue recognition from Trilive, a project at its final stage of completion, and absence of revenue recognition from Jade Residences, Whitehaven and LIV on Wilkie following the completion of these projects in 2017.

Revenue from Property Investment fell 37% to $2.03 million, mainly due to the sale of investment property in 59 Goulburn Street in Oct 2017.

However, Hotel Ownership rose 21% to $12.7 million, mainly attributed to the sale of investment property in 59 Goulburn Street

As cost of sales also decreased by 33% to $33.0 million, 1Q18 gross profit was $13.5 million, 17% lower than $16.3 million last year.

Other operating income dropped 42% to $2.04 million, due to absence of fair value gain on cross currency interest rate swap after the group’s settlement in 3Q17 and lower unrealised foreign exchange gain

Distribution and selling expenses increased by 186% y-o-y to $2.21 million, while administrative expenses were 2% higher at $2.08 million, mainly due to showflats and advertisement for The Navian and the upcoming projects, 120 Grange, Harbour View Gardens,

Share of results of associates more than doubled to $5.78 million compared to $2.62 million a year ago, mainly attributed to fair value gain from 117 Clarence Street, Australia, partially offset by stamp duty incurred for the acquisition of office building at St Kilda Road, as well as additional tax provision for an associate.

As at March 31, the group’s cash and cash equivalents stood at $182.1 million.

On the outlook, the group will continue to explore opportunities to strengthen its income streams and enhance shareholder value.

Barring any unforeseen circumstances, the directors expect the group to be profitable in 2018.

Shares in Roxy-Pacific closed at 52 cents on Monday.