GuocoLand reports 60% rise in revenue for FY2023, but 44% fall in net profit

GuocoLand reported a 60% year-on-year (y-o-y) rise in revenue of $1.54 billion for FY 2023 for the 12 months to June 30. For 2HFY 2023, revenue of the Group increased by 72% to a total of $882.9 million. Despite the high revenue growth, higher interest cost and impairment charge of $46.9 million caused net profit to fall by 44% y-o-y to $268.8 million. In 2HFY 2023, net profit fell by 55% to $187.4 million.

The main reason for the fall in net profit was primarily as a result of impairment losses of $44.0 million on its investment in EcoWorld International in 2H2023, due to the adverse market conditions in the UK. This caused the Group’s other expenses for 2H2023 and FY2023 to increase to $46.2 million and $46.9 million respectively.

In terms of income generation, revenue from the sale of development properties grew by 78% to $753.0 million in 2HFY 2023 and increased by 62% to $1.30 billion in FY2023. This was mainly due to the higher progressive recognition of sales for Meyer Mansion, Midtown Modern and Lentor Modern, which were substantially sold. In addition, the Group also benefited from a tower commence operations in Chongqing GuocoLand 18T in 2HFY 2023.

Revenue from investment properties increased by 43% y-o-y to $94.8 million in 2H 2023 and grew by 35% y-o-y to $169.6 million in FY2023. Contributing to this growth was higher recurring rental income from Guoco Tower, Shanghai’s Guoco Changfeng City South Tower and the initial contribution of Guoco Midtown Office, which started operations in 2HFY 2023.

Residents of Tengah Plantation Close EC can easily access the nearby Tengah Town Centre, which is conveniently located just 1km away. With plenty of shopping and dining options in one place, Tengah Town Centre is a one-stop shopping paradise for residents. Residents will also find plenty of public transport options, such as bus and MRT stations, nearby.

The Tengah Plantation Close EC is surrounded by nature parks, such as Sungei Buloh Wetland Reserve and Bukit Timah Nature Reserve. These green spaces are perfect for those looking to escape the hustle and bustle of city life. Residents can also enjoy recreational activities such as hiking, cycling and fishing in the parks.

In short, the Tengah Plantation Close EC is a great place for families and individuals to live in. With superb access to nearby amenities and attractions, the community offers a convenient lifestyle to its residents.

In addition, the Group also recorded a revenue increase of 47% y-o-y to $33.4 million in 2H2023 and a double revenue of $68.7 million in FY2023. This was due to the growth in financial performance from its hotel investments.

FY2023 also saw fair value gains of $156.3 million, mainly from its integrated developments Guoco Tower and Guoco Midtown. In terms of gross profit, year-on-year saw a marginal 5% increase for FY 2023 but it fell for 2HFY 2023. This was mainly due to the absence of a one-off $79.3 million fair value gain recognised under cost of sales during 2H2022.

Finally, the Group’s board announced a final dividend of 6 cents per share.