Sinarmas Land reports 44.7% growth in FY2021 earnings on improved performance from associates, JVs

Benjamin Cher

Published Mon, Feb 28, 2022 · 07:39 PM

SINARMAS Land reported a 44.7 per cent jump in FY2021 earnings to S$145.7 million from S$100.7 million a year prior in a filing on Monday evening (Feb 28).

The mainboard-listed property developer's FY2021 revenue declined 1.7 per cent to S$895 million from S$910.4 million. This decline was due mainly to lower sales of industrial land in Kota Deltamas, but was partially offset by higher revenue recognition for residential units and apartments in Indonesia as an increased number of units were handed over to buyers.

"As the world economies began to turnaround, Indonesia recorded a 3.69 per cent growth in 2021, pulling out of the economic contraction on the back of strong exports and increased domestic consumption from the gradual relaxation of Covid-19 curbs," said Margaretha Widjaja, executive director and vice-chairman of Sinarmas Land Indonesia division.

The earnings growth was driven mainly by improved performance from associated companies and joint ventures. Sinarmas Land's share of profit from associated companies reversed from a loss of S$48.8 million in FY2020 to a profit of S$17.4 million in FY202. Similarly, the share of profits from joint ventures was higher at S$15.4 million due to recognition of revenue from completed residential and commercial projects in Indonesia.

"The road to recovery in 2022, however, will be shadowed by inflation-led rate hikes, global supply chain disruptions, the ongoing Russia-Ukraine war and threats of new Covid-19 variants. Hence, we are cautious about business recovery in 2022 although our Indonesian listed subsidiaries chalked a resilient performance this year," said Widjaja.

Shares of Sinarmas Land closed down 2.3 per cent or S$0.005 to S$0.22 on Monday.