ROXY-PACIFIC Holdings on Wednesday posted lower net profit for the first quarter ended March 31, despite a near-doubling of revenue as cost of sales soared.

Net profit for the property and hospitality group fell 31 per cent to S$5.3 million from S$7.7 million a year ago, while revenue was up 91 per cent to S$88.5 million from S$46.5 million in the corresponding quarter last year.

This was on higher contribution from its property development segment, largely due to the settlement of The Hensley in Q1 2019 and progressive revenue recognition from The Navian. The increase was partially offset by lower revenue from the hotel ownership and property investment segments.

Cost of sales increased to S$67 million from S$31.7 million a year ago, and gross profit margin narrowed to 24 per cent from 32 per cent previously. Roxy-Pacific said this was due to higher contribution from the property development segment, which has a lower profit margin.

Earnings per share was 0.41 Singapore cent, compared with 0.59 cent a year ago.

Roxy-Pacific shares closed unchanged at S$0.405 before the results were announced.