Finance costs drag Gallant into the red in Q2

A MORE than doubling of finance costs, from S$15.3 million to S$36.8 million, dragged Gallant Venture into the red in the second quarter despite revenue dipping just one per cent to S$554.3 million.

Gallant Venture, which in May last year acquired 52.35 per cent of PT Indomobil Sukses Internasional Tbk (Imas), yesterday posted a net loss attributable to equity-holders of S$12.1 million for April-June quarter, reversing from a net profit of S$8.5 million a year ago. Imas is one of Indonesia's two largest vehicle distributors.

Compensating factors in Q2 included a 4 per cent drop in cost of sales to S$471.3 million and an exchange gain of S$2.79 million, against an exchange loss of S$1.92 million a year ago. The revenue dip came as Imas' contribution dropped from S$559.2 million to S$554.3 million. The numbers were strictly not comparable as the year-ago period consolidated just two months of Imas' results.