GuocoLand second-half profit up 122% to $325.2 million

SINGAPORE (THE BUSINESS TIMES) – Property developer GuocoLand on Tuesday (Aug 30) posted a 122 per cent rise in net profit for the six months ended June 30, 2022.

Although revenue was down 4 per cent to $512.8 million, the group narrowed its cost of sales to $287.3 million, bringing its gross profit for the half-year period to $225.5 million, which was 30 per cent higher than the year-ago period.

Net profit for the second half stood at $325.2 million, up from $146.2 million recorded the year before. The results translate to earnings per share (EPS) of 28.45 cents, up from 12.33 cents a year ago.

The slide in revenue came as increased income from the progressive recognition of sales from certain Singapore residential projects was offset by reduced revenue from GuocoLand’s Martin Modern project. Moreover, the year-ago period saw a one-off gain from the disposal of a land parcel located in Melaka.

During the half-year period, the group recognised revenue from Meyer Mansion, Midtown Modern and the sale of a low-rise office block at Guoco Changfeng City in Shanghai. Revenue from Martin Modern, which has been completed and fully sold, was substantially recognised in prior periods, the group said.

For the full year ended June 30, GuocoLand recorded a 132 per cent rise in net profit to $392.7 million, translating to an EPS of 33.68 cents. Revenue climbed 13 per cent to $965.5 million, led by contributions from the Singapore market.

The board has proposed a final dividend of six cents per share, unchanged from the year before. The dividend will be paid out on Nov 15, after the record date on Oct 27.

GuocoLand closed one cent or 0.6 per cent lower at $1.67 on Monday.