Pace profit nosedives 94% in Q2 despite revenue gain
SET-listed Pace Development reported a 94% profit plunge in the second quarter, leading to a net loss of 3.87 billion baht for the first half of 2018.
According to a company statement to the Stock Exchange of Thailand, the company recorded a net profit of 216 million baht for the three-month period to June 30, down 94% from 3.91 billion baht in the same period last year.
The poor showing was attributed to losing control of subsidiaries during the quarter, Pace said.
Lower net profit for the second quarter came despite the company’s higher total revenue of 5.62 billion baht, up 118% from 2.57 billion baht in the same period last year.
Higher revenue for the quarter was driven by increased revenue from the sale of 58 residences in the Ritz-Carlton Residences at MahaNakhon, greater than the 33 sold in the same period last year.
The company plans to continue transferring the remaining units at the Ritz-Carlton Residences to customers in 2018.
The construction at MahaSamutr Villas under the MahaSamutr Project is 95% complete. In the second quarter of 2018, the company transferred the ownership of two villas and recognised revenue of 101 million baht.
It expects to be able to sell and transfer the remaining villas to customers in 2019.
Meanwhile, MahaSamutr Country Club and Sports Club are in the process of restructuring and are expected to be completed and operational in 2019. Nimit Langsuan and Windshell Naradhiwas projects are under construction as planned.
The company received sufficient credit from financial institutions to complete the projects, and it expects to be able to transfer the ownership of all residences to customers and realise revenue in 2019.
For the gourmet food and beverage business, the company reported total revenue for Dean & DeLuca (D&D) was 568 million baht, down 29% from last year’s 802 million baht.
This was a result of the reduced revenue from sales of merchandises, gourmet food and beverages (D&D) in the US.
PACE shares closed yesterday on the SET at 69 satang, down two satang, in trade worth 171 million baht.