BBR Holdings’ gross profit plunged 80% in Q3

On back of losses in its construction segment.

Mainboard-listed BBR Holdings reported an 80% year-on-year plunge in its gross profit for the third quarter. The group raked in $2.4m in Q3, down substantially from its gross profit of $11.9m in the same quarter last year.

BBR Holdings blamed the decline on project losses recognised for general construction projects and lower profit contribution from the property development segment. The Group’s lower gross margin of 1.4% for the third quarter was mainly affected by project losses recognised by the general construction segment.

“The industry outlook remains challenging in the next 12 months with increasing competition and an expected increase in labour cost due to higher foreign worker levies and a short supply of foreign workers. As at the date of this announcement, the Group has an order book of approximately S$760 million for construction projects, predominantly in Singapore and Malaysia,” stated BBR Holdings.