SINARMAS Land : A26 0% posted on Tuesday (Feb 27) a net profit of S$163 million for the six months ended Dec 31, 2023, a 24.6 per cent drop from the S$216.1 million booked in the corresponding year-ago period.

Revenue for the second half of 2023 was 0.5 per cent lower year on year, at S$743.2 million, down slightly from S$747 million in H2 2022.

For the financial year, net profit shrank 20.7 per cent to S$272.5 million from S$343.6 million the year before. The overall gross profit margin was 63.7 per cent, down from 73 per cent in FY2022.

In a bourse filing, the Indonesian property developer attributed the lower profit to the sale of land parcels with lower profit margins.

Selling expenses rose 9 per cent in FY2023 to S$147.4 million, due to higher promotion costs and higher marketing expenses.

Earnings per share for H2 2023 stood at 3.83 Singapore cents, lower than the 5.08 cents in H2 2022.

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The board of directors will recommend a first and final dividend of 0.08 Singapore cent per ordinary share at the group’s annual general meeting on Apr 23. If approved, the dividend will be payable on Sep 30.

Looking ahead to 2024, the group noted that “it anticipates a slowdown in its operational area, with property supply surpassing demand, and customers adopting a cautious stance”.

In view of the challenging environment, Sinarmas Land’s executive director Margaretha Widjaja said the group “intends to maintain strong cash reserves to take opportunities to acquire quality real estate assets at distressed valuations”, both in Indonesia and beyond.

“Our commitment remains steadfast in strengthening our global footprint and seizing growth opportunities that align with our objectives,” she added.

Prior to the announcement, shares of Sinarmas Land closed on Tuesday at S$0.17, down S$0.005 or 2.9 per cent.