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Vibrant Group's Q3 net profit drops by 88.6% to S$146,000 as non-controlling interests take bulk of earnings
VIBRANT Group's profits surged in the third quarter, on the back of higher revenue - but shareholders may want to hold off on popping the bubbly.
While profits swelled to S$2.29 million for the three months to Jan 31 - from S$262,000 previously - most of it went to non-controlling interests, the integrated logistics solutions provider said on Wednesday.
Net profit attributable to owners of the company in fact sank by 88.6 per cent on the previous year, to S$146,000, amid unrealised foreign exchange loss and higher finance costs.
Vibrant said in its results announcement that the increase in profit attributable to non-controlling interests was "mainly due to higher profits from real estate business".
But revenue for the period more than tripled, jumping from S$53.5 million to S$177.3 million, thanks largely to contributions from Blackgold International Holdings Limited (BIHL), a China-based coal producer acquired in July 2017.
Vibrant said that it has a net gearing of 0.94 times as at Jan 31, with the increase in net current liability position due to short-term revolving bank loans to BIHL and the redemption of the perpetual bond.
"The group is looking into improving the position," it added.
Earnings per share plunged to 0.02 Singapore cent, from 0.21 Singapore cent previously.
Vibrant closed flat at S$0.365 before the announcement.