Metro Q4 profit drops 84.8% to S$1.1m on lower sales, exchange differences

METRO Holdings' fiscal fourth-quarter net profit fell 84.8 per cent to S$1.12 million, or about 0.1 Singapore cent per share, on lower revenue and exchange differences.

The department store operator and property developer is declaring a final dividend of two Singapore cents per share and a special dividend of five Singapore cents per share for a total payout of seven Singapore cents per share.

For the full year ended March 31, 2016, net profit decreased 20.8 per cent to S$113.1 million, or 13.7 Singapore cents per share.

Fourth-quarter revenue shrank 21.9 per cent to S$32.6 million as Metro Sengkang and Metro City Square ceased operations.

Other income, including interest income, fell 71.9 per cent to S$2.7 million largely on exchange differences. General and administrative expenses also jumped 139.6 per cent to S$12.9 million due to unrealised foreign-exchange losses of S$8.3 million on bank balances.

Metro said it expects to continue being subjected to "significant currency translation adjustments" on foreign operations. The retail division continues to face challenges from competition and discounted trading amid a slowing Singapore economy and high operating costs, the company said.