On back of lower contributions of associates.
Metro Holdings’ net profit dropped to $55.9m in 3QFY16, from $63.9m in the corresponding quarter in FY15.
According to the company’s announcement, the pullback is in line with the decline in profit before taxation, which tumbled 9.5% to $59.4m. This was on back of 3QFY15’s $25.4m gain from the disposal of Metro’s 10.7% stake in the associated companies owning six Tesco Lifespace developments in China.
Additionally, the contribution of Metro’s associate Top Spring International Holdings was lower by $16.7m, though this was partially offset by a raised contribution of $35.9 million from the recognition, on handover of presales, of properties of the Nanchang project.
Meanwhile, general and administrative costs climbed to $11.9m during the quarter from $9m in 3QFY15 due to an absence of net forex gains. On the other hand, an uptick in share results of joint ventures to $6m was posted in Q3 as there was an increased deficit from fair value adjustments on an investment property recorded in the previous corresponding quarter.
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