Metro's Q4 profit down 83% despite higher revenue

METRO Holdings on Thursday reported a 82.7 per cent drop in net profit to S$7.6 million for its fourth quarter ended March 31, 2015, down from S$43.8 million a year ago.

This was despite the property development and investment group's revenue growing 19.2 per cent to S$41.7 million. Revenue rose due to higher turnover from the retail division as the new store at Metro Centrepoint started operations in Q3 FY2015.

But earnings fell because of the retail division's higher operational and overhead costs, mostly from the new Metro Centrepoint store.

There was also a write-down of the costs of plant and equipment of Metro Centrepoint of about S$8.8 million, it said.

For the full year, the company's earnings rose 33.7 per cent to S$142.9 million, on a 4.78 per cent increase in revenue to S$145.8 million.

This is due to higher turnover driven by the retail division's new Metro Centrepoint store, the strengthening of the renminbi against the Singapore dollar, and higher rental income from certain malls in its property division.

The board has recommended dividend of 6 Singapore cents, comprising an ordinary final dividend of 2 cents and a special dividend of 4 cents, unchanged from a year ago.