Indonesian Stores Boost Metro Holding's Retail Sales

Friday, 10 February 2012 18:51

Written by Hans GN

SINGAPORE, Indonesia Today - SGX-listed Metro Holdings Limited, a property development and investment group backed by established retail operations in the region, reported stronger performance for the three months ended 31 December 2011 (3Q 2012).

Group revenue grew 9.0% to S$51.6 million from S$47.3 million achieved in the previous corresponding period (3Q 2011), mainly buoyed by revenue growth in the Retail division. The Group reported a net profit of S$10.7 million in 3Q 2012, up 25.6% from S$8.5 million in 3Q 2011 on higher turnover from both its Property and Retail divisions.

In 3Q 2012, Metro’s core Property division reported a 4.4% increase in revenue to S$17.1 million from S$16.4 million in 3Q 2011. This was due to higher rental income, in particular from higher occupancy at Metro Tower Shanghai which stood at 97.9%, and a 3.0% increase in the value of the renminbi against the Singapore dollar.

Despite moderated growth amidst an increasingly crowded retail scene, the Group’s Retail division reported an 11.4% increase in revenue to S$34.5 million in 3Q 2012, with higher revenue growth from Metro Woodlands, offsetting earlier disruptions to sales activities during retrofitting works which were carried out in 1Q 2012.

In Indonesia, Metro expanded its departmental store footprint with the openings of Metro Gandaria City in January 2011 and during the quarter, Metro Surabaya in December 2011, which helped grow sales of the Retail division’s associated company.

“Despite new entrants to the retail scene, Metro continues to perform well in the face of keen retail competition. Sales growth was particularly strong at the recently refurbished Metro Woodlands in Singapore, and Metro Gandaria City and Metro Surabaya in Indonesia – all of which contributed to the Retail division’s revenue which boosted our topline,” said Metro’s Chairman, Lt Gen (Rtd) Winston Choo.

Overall, Group profit before tax held steady at S$12.4 million for 3Q 2012 compared to the previous corresponding period.

The Group continued to maintain a strong balance sheet, with a healthy cash position of S$450.1 million and shareholders’ equity of approximately S$1.0 billion as at 31 December 2011.

For this year's outlook, rental income from the Group’s investment properties is expected to remain stable, subject to the completion of the disposal of Metro City Beijing, contingent on the fulfillment of conditions precedent where the risk of non-completion exists.

Notwithstanding keen competition in the retail trade and an anticipated slowdown in consumer spending following the just-over Chinese New Year festive buying, the Group seeks to maintain the sales performance of its Retail Division. (Indonesia Today)

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