Top Global’s 3Q losses widen to $1.5 mil on currency translation losses

By Michelle Zhu / The Edge Singapore | November 13, 2017 10:47 AM SGT
The Quinn, by Top Global
SINGAPORE (Nov 10): Top Global, the property developer and hospitality and facility manager, has announced a loss of $1.5 million for 3Q17 compared to its loss of $0.1 million in the same period a year ago, due to other losses incurred over the quarter on forex losses.
Revenue grew 27% to $51.6 million from $40.5 million in the previous year on higher contributions from its Property Development and Hospitality segments due to the bulks sale of dual-key units in the Braddell project, and the consolidation of 5Footway Founders and its subsidiaries, respectively.
However, due lower average selling prices of larger units sold in the Braddell project, gross profit for 3Q decreased 12% to $7.1 million from $8 million a year ago, and gross profit margin fell accordingly.
Distribution and marketing expenses increased by $0.9 million mainly due to increased sales commission.
Notably, Top Global recognised other comprehensive losses for $4.8 million over the quarter as compared to other comprehensive income of $6.1 million in 3Q16, mainly due to currency translation losses of $5 million on the consolidation of its Indonesian subsidiaries as the SGD strengthened against the IDR.
The group observes improving private residential property sentiment in Singapore, as well as a stable residential property market in Indonesia with signs of recovery, although consumer purchasing power continues to remain a concern.
It adds that it will continue to explore into potential collaborations which would expedite its residential and industrial developments at Rancamaya, Royal Tajur, Harvest City and Royal Balaraja.
This story, written by Michelle Zhu, first appeared on The Edge Singapore.