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Fragrance Group's Q3 net profit rises 6.7%
MAINBOARD-LISTED Fragrance Group posted a 6.7 per cent increase in third-quarter net profit to S$24.3 million, from the S$22.8 million earned during the same period last year.
This was mainly due to the absence of the higher attribution of profits to non-controlling interests in the prior period for the property and hotel group, particularly relating to the Parc Rosewood project which has since been completed.
Earnings per share for the quarter were 0.4 Singapore cent compared to 0.3 Singapore cent last year, the group reported on Friday.
The group saw its revenue for the three months ended Sept 30 increase 17.5 per cent to S$133.3 million, from S$113.5 million last year.
The property development sector contributed S$128.68 million or 96.5 per cent of the consolidated revenue. This is an increase of about 21.2 per cent from the S$106.20 million contribution last year. The main contributor to the revenue during this period was the progressive recognition of income from development projects, namely Urban Vista, Novena Regency and Kensington Square. Other projects that made significant revenue contributions included Le Regal, Suites @ East Coast and Icon @ Pasir Panjang.
The property investment sector contributed S$4.62 million or 3.5 per cent to the total consolidated turnover. This represents a decrease of 36.5 per cent from the S$7.28 million recorded last year. This was mainly due to the commencement of asset enhancement works to its investment property at Alexandra Road during the third quarter of 2014 and therefore no rental income was generated. This decrease was partly offset by the rental income from the newly completed investment property at Punggol Point.
The group confirmed that it is expanding its operations into the Australian market and has acquired four plots of land in prime CBD locations in three different cities. However, it was concerned about the fourth straight quarter of price decline among private properties in Singapore.
"While the low interest rate environment continues to be the catalyst to the market, the potential buyers are generally cautious in their buying decisions," the group said in its financial statement.