Goodland Group (5PC) H1 2024 earnings summary

Executive summary

• 1H2024 revenue fell 48% YoY to S$5.2m; gross profit declined to S$0.4m and the period ended with a S$3.5m net loss.

• Lower development revenue and margin drove the shift from S$0.3m pretax profit in 1H2023 to a S$3.5m pretax loss.

• Operating cash flow recovered to S$16.0m, mainly from collections and reductions in receivables and contract assets.

Financial highlights

• Revenue S$5.175m, down 48% YoY; cost of sales S$4.810m, down 24%; gross profit S$365k versus S$3.696m.

• Gross margin was 7% versus 36.9% YoY, reflecting higher costs on development properties sold in 1H2024.

• Net loss after tax was S$3.531m versus S$250k profit; basic and diluted EPS was -0.96 cents versus 0.10 cents.

• Finance costs declined to S$1.695m from S$1.733m; administrative expenses were stable at S$2.7m.

• Total comprehensive loss was S$6.392m, including S$1.997m of foreign currency translation losses.

Outlook and guidance

• The next 12 months are expected to be challenging; focus remains on moderating higher interest and material costs while cautiously pursuing local and regional opportunities.

• Mortgage rates are expected to remain relatively high; construction continues despite rising costs.