Metro Holdings has reported a net profit after tax of $16.8 million for its 1HFY2023 ended 30 September, compared to $18.4 million in the same period a year ago.
Revenue for Metro came in at $53.9 million in 1HFY2023, as compared to $40.8 million in 1HFY2022.
This was largely due to its retail division reporting higher sales of $47.3 million in 1HFY2023 from $35.3 million in 1HFY2022.
For its two Singapore department stores, 1HFY2022 saw shorter operating hours from May 17, 2021 to August 18, 2021 during Singapore’s Phase 2 and Phase 3 (Heightened Alert) measures.
The retail segment reported a profit of $3.3 million in 1HFY2023, compared to a loss of $0.7 million in 1HFY2022 in line with higher revenue and improved margins.
However, Metro’s retail business continues to be impacted by the higher inflation-driven costs in raw material, labour and energy amidst a highly competitive trading environment.
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Separately, its property division’s revenue for 1HFY2023 increased to $6.6 million from 1HFY2022’s $5.5 million, mainly due to higher sales of property rights of the residential development properties in Bekasi and Bintaro, Jakarta.
Property segment, excluding finance costs, associates and joint ventures, reported a lower profit of $5 million in 1HFY2023 as compared to $6.3 million in 1HFY2022.
Metro saw a lower share of profit of joint ventures due to lower contributions from investment properties in China.
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This is in addition to rental rebates and waivers granted to tenants brought about by disruptions from China’s zero Covid-19 policy, and sporadic lockdowns in 1HFY2023.
The profit loss was partially offset by higher profit from associates in Australia, owing to an increased stake of 30% in a portfolio of properties there, as well as a lower loss from the contributions of investment properties in China
The average occupancy rate for Metro’s five investment properties – GIE Tower in Guangzhou, China; Metro City and Metro Tower in Shanghai, China; a freehold office property at Chancery Lane in London, UK; and Asia Green, Singapore – remain high at 91.1% as at Sept 30.
Metro’s balance sheet remained strong with net assets of $1.6 billion and total assets of $2.4 billion as of 30 September 2022.
Shares of Metro closed flat at 65 cents on Nov 11.
