Far East Orchard’s profit attributable to equity holders rises 2.1% YoY to $8.2m in 1H23

The company attributed its improved earnings to strong tourism growth.

Far East Orchard recorded a 2.1% YoY higher profit attributable to equity holders of $82.m  in 1H23.

In a bourse filing, the company attributed its improved earnings to the strong recovery in corporate and leisure travel.

The strong tourism growth also lifted the company’s revenue by 42.7% YoY to $90.9m, and its operating profit by 12.0% YoY to $28m.

Despite the higher operating profit, the company recorded a 13.6% YoY drop in its profit after income tax ($7.6m).

“In 1H FY23, the Group recognised an impairment loss of S$3.4 million on its mixed-used development in the UK due to the slowdown of the UK housing market caused by the rising interest environment. The rising interest cost also impacted the Group’s results,” the company said.

“The results would have been stronger if not for the one-off gains, including the derecognition of lease liabilities recognised in 1H FY22,” the company added.