Far East Orchard posts 54.8% net profit surge in 1Q24

Company credits stable hospitality segment for performance boost.

Far East Orchard saw its net profit soar by 54.8% YoY to $6.5m in 1Q24.

In a bourse filing, the company attributed its improved performance to stable contributions from its hospitality business segment.

In April, the company, through its joint venture Toga Far East Hotels, began operating the 273-key Vibe Hotel Melbourne Docklands.

Apart from improved net profit, the company also recorded a 10.4% YoY higher revenue of $50.9m and saw a 17.5% YoY uptick in its operating revenue reaching $18.1m.

With a better bottom line, the company also reported a 46.8% YoY higher profit attributable to equity holders of the company of $6.9m.

For the rest of the year, the company plans to become asset-light.

"The group will continue to explore working with more like-minded capital partners like Woh Hup in our Bristol and Glasgow development deals," the company said.

"Our strategic focus remains dedicated to strengthening the hospitality and PBSA platform to scale up for growth and further expansion, which includes new recurring income streams or vertical acquisitions under the lodging platform that will ensure a diversified and balanced portfolio," the company added.