Roxy Pacific reports 1Q19 net profit fell 31 percent on higher expenses and taxes

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Roxy Pacific Holdings reported Wednesday its first quarter net profit fell 54 percent on-year to S$5.33 million on higher expenses and taxes.

Revenue for the quarter ended 31 March increased 91 percent on-year to S$88.52 million on a higher contribution from the property development segment, Roxy Pacific said in a filing to SGX after the market close.

For the property development segment, revenue increased 133 percent on-year to S$74.17 million in the quarter, while gross profit rose 110 percent on-year to S$14.32 million, the filing said.

The hotel ownership segment posted a 2 percent on-year decline in revenue to S$12.41 million, while gross profit fell 7 percent on-year to S$5.92 million for the quarter.

Property investment revenue fell 4 percent on-year to S$1.94 million, while gross profit declined 13 percent on-year to S$1.31 million, the filing said.

“The increase was largely due to revenue recognition from The Hensley upon settlement in the first quarter of 2019 and progressive revenue recognition from The Navian,” Roxy Pacific said, adding that was offset by absence of revenue from the Trilive and Straits Mansions projects, which obtained their temporary occupation permits (TOP) in 2018.

Distribution and selling expenses rose 54 percent on-year in the first quarter to S$3.41 million, mainly on showflat expenses for the View at Kismis, Fyve Derrbyshire, RV Altitude and Dunearn 386 projects, Roxy Pacific said.

Finance costs increased 38 percent on-year to S$5.61 million, mainly on borrowing costs for RV Altitude, Fyve Derbyshire, 120 Grange, Harbour View Gardens and Bukit 828 projects, the filing said.

Taxation jumped 176 percent on-year to S$2.37 million, mainly on a tax provision for The Hensley project, it said.

The share of results of associates was a loss of S$94,000 for the quarter, compared with a profit of S$6.11 million in the year-ago quarter, mainly on a year-earlier fair-value gain on the 117 Clarence Street property, the filing said. In addition, in 2019’s first quarter, it had a share of loss due to showflat expenses for the Wilshire Residences and NEU at Novena projects, it said.


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