Isetan Singapore reports 2021 swung to net profit

The Isetan department store at Singapore’s Orchard Road shopping beltThe Isetan department store at Singapore’s Orchard Road shopping belt

Isetan Singapore reported Monday it swung to a net profit of S$2.16 million for 2021 from a net loss of S$20.23 million as measures to prevent the spread of Covid-19 were eased, leading to higher sales. 

Revenue for the 12 months ended 31 December increased 11.2 percent on-year to S$85.80 million, the department store operator said in a filing to SGX.

The increase was on the higher sale of goods from the retail segment, higher consignment income and higher rental income from the Isetan Wisma Atria investment property, Isetan Singapore said. 

“The revenue increase in FY 2021 was mainly due to the stores being able to operate on a full twelve months basis as compared to the closure of stores during the period 7 April to 18 June 2020 as well as the impact from the safe management measures implemented last year,” Isetan Singapore said.

“The improved revenue in FY 2021 was however affected by the discontinued operations of Jurong East store on 8 March 2020,” the company said.

“Revenue from investment property increased as compared to the same period last year where higher rental rebates were given to SME tenants in accordance with government measures in response to the Covid-19 pandemic and new operating lease income from Isetan Wisma Atria,” Isetan Singapore said.

Outlook

In its outlook, the department store operator pointed to a gradual recovery as Singapore transitions to a “living with the pandemic” policy.

“The recovery however was dependent mainly on domestic consumers for 2021. It was an essential boost to the local economy as Singaporeans’ travel opportunities were limited by border restrictions,” the company said, but noted some continued measures are still limiting a full recovery.

“It remains to be seen how quickly travel restrictions can be further eased to open up the economy for more tourist spending,” the retailer said. “The company is focused on further driving operational performance and will continue to leverage on its online business which has seen continuous growth.”

Isetan Singapore declared a final dividend of 3 Singapore cents a share, compared with no dividend a year earlier.