Thakral's H1 net profit surges to S$8.9m on lifestyle, fragrance product growth

STRONG growth in the lifestyle and fragrance segment lifted the net profit of Thakral Corporation to S$8.9 million for the half-year ended June, up from S$241,000 a year ago.

The real estate player recorded a 44 per cent rise in H1 revenue to S$61.8 million, thanks to a 54 per cent increase in sales from the lifestyle segment to S$49.4 million. Revenue from the real estate division also rose 14 per cent to S$12.4 million.

Thakral has proposed an interim dividend of S$0.02 per share, up from S$0.01 a year ago.

The company saw "robust growth" in its lifestyle and fragrance product categories, as its Hong Kong subsidiary was appointed the exclusive distributor by DJI for South Asia. It secured the distributorship for both the consumer range and commercial products.

Meanwhile, fragrance sales for the half-year surpassed the figure for the whole of FY2020 by 1.4 times. Thakral said it continues to work with other brand-owners to strengthen its portfolio of premium fragrance, beauty and lifestyle brands.

The real estate business also held steady in the pandemic. Thakral's GemLife joint venture in Australia contributed S$700,000 in net profit. GemLife's lifestyle properties cater to seniors over 50. Sale and settlement of homes in its five active resorts was up 65 per cent, without a reduction in prices.

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GemLife eyes increasing its portfolio from the current target of 4,500 homes to "meet the ever-increasing demand for affordable housing for the over 50s in Australia", it said.

Over in Japan, the valuation of office units in Thakral's portfolio has risen by S$9.3 million, despite delays in lease renewals and new leasing transactions. Lease renewals of office properties continued to be made at improved rates, the company said.

Looking ahead, Thakral's non-executive chairman Natarajan Subramaniam is optimistic about the real estate market in Australia, as demand for retirement resorts remains resilient.

"Low interest rate policies are expected to continue worldwide, and real estate investments in Japan with relatively high yields are expected to remain attractive to investors. The easing of restrictions on travel for business purposes will further encourage foreign investors to resume their activities in Japan with an eye on post-virus growth potential," he said.

Shares of Thakral closed at S$0.51 on Thursday, down 1.92 per cent.