Sinarmas Land net profit jumps 33.8% to $235.4m in 2021
The group's debts also decreased significantly with a net debt-to-equity ratio of 8.7%.
SGX-listed Sinarmas Land announced its net profits for the full year ended 31 December 2021 (FY 2021) jumped 33.8% to $235.4m, driven by the improved performance from its associated companies and joint ventures, as well as lower tax expenses and finance costs. The group's debts also decreased significantly with a net debt-to-equity ratio of 8.7%.
However, FY 2021 revenue declined 1.7% year-on-year (YoY) to $895m due to lower industrial land sales. The lack of industrial land sales was largely offset by higher revenue recognition for residential and apartment units in Indonesia. Likewise, the group's recurring income dipped 7.5% year-on-year to $115.8m, mainly due to lower hospitality and rental income. Throughout the year, the group's hospitality business was negatively impacted by closed international borders and various degrees of mobility restrictions imposed by the local government.
Executive director Margaretha Widjaja commented, "As the world economies began to turnaround, Indonesia recorded a 3.69% growth in 2021, pulling out of the economic contraction on the back of strong exports and increased domestic consumption from the gradual relaxation of COVID-19 curbs. However, the road to recovery in 2022 will be shadowed by inflation-led rate hikes, global supply chain disruptions, the ongoing Russia-Ukraine war and threats of new COVID-19 variants, said Margaretha Widjaja, executive director of the Indonesia-based firm.
"Hence, we are cautious about business recovery in 2022 although our Indonesian listed subsidiaries chalked a resilient performance this year," she added.
Outside Indonesia,Sinarmas Land has successfully exited its investment in China's Chengdu Youxing Garden and completed the disposal of SML Great, which owns the investment property Unlimited House in Central London, recording notable gains for both divestments. It will continue to seek out new property investments and partnerships to expand our global footprint in 2022.