Goodland Group (5PC) H2 2023 earnings summary

Executive summary

• FY2023 net profit fell to S$1.38m from S$10.04m as lower project revenue and sharply higher finance costs outweighed an improved gross margin.

• Sales and leasing remained relatively healthy; recurring rental income and a development pipeline support future revenue, while management expects the next 12 months to be challenging.

Financial highlights

• Revenue was S$21.29m, down from S$37.08m; gross profit was S$6.53m versus S$9.55m, while gross margin improved to 30.7% from 25.7%.

• Profit after tax was S$1.38m versus S$10.04m; basic and diluted EPS was 0.40 Singapore cent versus 2.91 cents.

• Finance costs rose 122% to S$4.08m from S$1.84m, reflecting higher bank loan rates; administrative expenses remained stable at S$4.98m.

• Other operating income was S$2.78m versus S$3.42m, including a S$2.54m investment-property fair-value gain versus S$3.07m.

• Total comprehensive loss was S$8.06m versus income of S$0.70m, largely reflecting S$9.44m of other comprehensive losses, including currency translation effects.

Outlook and guidance

• Management expects the next 12 months to be challenging amid elevated material, labour and financing costs and a potential labour crunch following DRC changes from January 2024.

• Priorities include cost control and productivity, regional development to diversify risk, and expanded leasing and management to build recurring income.

• Revenue from S$6.91m of partially or fully unsatisfied performance obligations at year-end was expected to be recognised in the next reporting period.