GuocoLand profits plummeted 85% to $26.1m in Q1

Profit shares from associates and joint ventures crashed 92% to $13.5m.

GuocoLand’s profit slid 85% YoY to $26.1m in its Q1 FY18/19 from $171.79m, an announcement revealed. Its revenue was slashed by more than half from $316.98m to $168m.

Revenue was dragged down by lower sales of completed residential units recorded as the firm has brought down its inventory of completed unsold units substantially in the past quarters, especially those in Singapore.

“Revenue contribution from the strong sales of Martin Modern will be recognised progressively in future quarters as it is currently undergoing construction,” the firm noted.

Other income for the firm rose by $6.6m whilst other expenses reduced by $9.5m YoY due to movements in foreign exchange and fair value changes on derivative financial instruments. Finance costs dropped 23% to $19.3m over higher capitalisation of finance costs during the quarter for projects.

Meanwhile, share of profit of associates and joint ventures crashed 92% to $13.5m amidst the recognition of profit from Changfeng Residence, the group’s joint venture residential project in Shanghai, in the previous corresponding quarter.