You are here
Koh Brothers' Q2 profit down 8% on lower revenue
DRAGGED by lower sales, Koh Brothers Group's net profit for the second quarter slipped 8 per cent to S$10.6 million.
Revenue comprising sales of products, services rendered, property development and rental income, as well as construction contracts, dropped 5 per cent for the three months ended June 30, 2015, to S$104.5 million.
Share of results of joint venture companies recorded a S$5.97 million gain for the quarter from a loss of S$1.63 million for the year-ago period.
This was mainly due to fair value gain from investment property offset by initial setup cost for a residential project.
Francis Koh, managing director and group CEO of Koh Brothers, said: "Amid the challenging operating environment - including the Singapore property market slowdown, rising operating costs in the construction sector and a decline in tourist arrivals impacting the hospitality sector - we will continue to execute our time-tested strategies while leveraging on our suite of capabilities and strong fundamentals built over the last five decades to remain resilient."
On the real estate and construction businesses, he said the group is encouraged by the response to its latest Westwood Residences executive condominium project and will continue to drive sales.
Meanwhile, the group seeks to prudently participate in land tenders where it can demonstrate expertise in launching strategically-located developments with differentiating features.
On the construction front, Mr Koh said the group will continually replenish its order book while riding on the expected growth in demand from the public sector.