First Sponsor (ADN) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 27.2% to S$172.9m; profit attributable to equity holders increased 12.4% to S$11.9m despite higher net financing costs.

• European property income strengthened, while PRC development pre-sales remained muted amid weak market sentiment.

Financial highlights

• Revenue increased 27.2% to S$172.873m; gross profit rose 9.8% to S$71.8m, while cost of sales grew 43.4% to S$101.1m.

• PBT rose 158.5% to S$32.4m; profit attributable to equity holders increased 12.4% to S$11.924m from S$10.605m.

• Net income was S$14.9m versus S$7.8m; operating income rose to S$47.1m from S$27.5m, while net finance costs climbed 81.8% to S$21.1m.

• PBT benefited from a S$10.6m fair-value gain on reclassifying Plot E1 retail podium and improved associate/JV results; net derivative fair-value losses were S$43.8m.

• Basic EPS was 1.07 cents versus 1.15 cents, mainly reflecting additional shares issued on warrant exercises.

Outlook and guidance

• PRC project handovers are expected through FY2024 and 2025; advanced construction stages are expected to keep cash-flow burden manageable.

• Completion pipeline includes Puccini Milan and Prins Hendrikkade in FY2025; Dreeftoren office and residential phases in FY2025 and FY2026; Sydney CTC in FY2027; and Meerparc in FY2028.

• PRC property-financing loans are expected to decline further in 2H2024 as maturities fall due and new lending remains cautious.

• Puccini Milan and Le Méridien Frankfurt renovation works were expected to start in 2H2024; Puccini hotel operations are targeted for 2H2025.