Fragrance Group posts 38% rise in sales to $57.7m in Q3

Fragrance hotel and property group says it recorded a turnover of $57.7 million in the Third Quarter of 2009, a 37.9% increase from $41.83 million recorded in the corresponding period in 2008.

The property sector contributed $48.79 million or 84.6% of the consolidated revenue. This is an increase of about 51.1% from the $32.28 million contribution in the third quarter of 2008. Fragrance says major contributor to revenue in the third quarter 2009 included Parc Imperial, a condominium project with 138 units, Imperial Heights, City Regency and the landed housing projects at Wak Hassan Drive (8 units) & Penaga Place (18 units).

The hotel sector contributed $8.91 million or 15.4% to the total consolidated turnover. This represents a decrease of 6.7% from the $9.55 million in the corresponding period of 2008. This was mainly due to lower occupancy and room rates at existing hotels although these were partly offset by the revenue contributed by two new hotels that started operations after third quarter 2008.

Overall gross profit increased by 26.6% to $23.95 million. Gross Profit margin achieved by property sector has improved slightly to 33.5% during third quarter 2009 compared to the 33.0% achieved during the corresponding period of 2008.

Finance costs decreased slightly by $0.07 million in the third quarter 2009 mainly because of the decrease in interest rates on our term loans pertaining to our existing hotel properties.

Fragrance says overall profit before taxation increased by 28.8% from $14.11 million in the third quarter 2008 to $18.17 million in the same period of 2009 with property development and hotel sectors contributing 75.5% and 24.5% respectively to the total profit before taxation.

Source : The Edge – 15 Oct 2009

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