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GSH Q2 net profit falls 41% on higher sales cost, weaker hospitality business

GSH Corporation on Tuesday posted declines for its second quarter, with net profit down 40.8 per cent to S$1.31 million on higher cost of sales and a weaker hospitality business.

For the quarter ended June 30, the property developer posted revenue of S$31.1 million, up 35.5 per cent. But this was dragged by cost of sales, which shot up 68 per cent year-on-year to S$15.6 million. 

The group's hospitality business, driven mainly by its two hotels in Kota Kinabalu, Sabah, also fell by 5.6 per cent year-on-year to S$16.4 million. 

Earnings per share for the second quarter slid to 0.067 Singapore cent from 0.113 cent a year ago.

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As for the half-year ended June 30, GSH's net profit was lower by 50.6 per cent to S$1.6 million. Revenue stood at S$57.4 million, up 21.1 per cent, but was weighed by cost of sales which surged 42.5 per cent to S$26.8 million. 

Its hospitality business recorded S$35.8 million in revenue, down some 5.8 per cent from the previous year.

Half-year earnings per share were 0.084 Singapore cent, lower than the 0.169 cent a year ago.  GSH shares closed unchanged at S$0.38 on Tuesday before the results were announced.