Property firm Fragrance Group has reported an overall revenue decline of 21.3 percent to $87.79 million in the first quarter of 2015 from $111.5 million last year.
The revenue drop is due to lower contribution from its property development business with fewer ongoing projects compared to Q1 2014. Consequently, turnover in this segment dropped 20.1 percent to $83.19 million.
“Projects that contributed to revenue during this period include Urban Vista, Kensington Square, Icon @ Pasir Panjang and Novena Regency,” the group said in a filing on SGX.
Meanwhile, the property investment business raked in $4.6 million in revenue during the said period, down from $7.3 million a year ago.
“The lower rental income for Q1 2015 was due mainly to the absence of contribution from the investment property at Alexandra Road following the Asset Enhancement work, which commenced in the third quarter of 2014,” Fragrance noted.
Given the weaker overall revenue, the group’s gross profit decreased 23.8 percent to $29.63 million, but the profit margin remains roughly the same at 30.1 percent versus 30.3 percent in Q1 2014.
As a result, profit before tax fell 30.4 percent from $29.48 million previously to $20.54 million in Q1 2015, while net profit slumped 32.2 percent to $16.44 million from $24.26 million in Q1 2014.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
