Banyan Group H2 profit falls 7% despite 35% jump in revenue

[SINGAPORE] Resort operator Banyan Group reported a 7 per cent decline in net profit to S$33.5 million for the second half ended Dec 31, 2025, from S$35.9 million in the corresponding period a year ago.

This came despite revenue for the half-year surging 35 per cent to S$271.3 million, up from S$200.9 million previously.

Earnings per share for the half-year stood at S$0.0386, down from S$0.0414 in the year-ago period.

The drop in the bottom line was largely due to higher depreciation and amortisation expenses, increased net finance costs and the absence of a S$23.3 million Covid-19 insurance compensation that boosted the previous year’s earnings.

The residences segment was the primary driver of top-line growth, with H2 revenue more than doubling year on year to S$139.6 million. This growth was underpinned by the completion and progressive handover of condominiums and higher unit recognition of 182 units, compared with 118 units in H2 2024.

Conversely, H2 revenue from the hotel investments segment fell 4 per cent to S$90.9 million. Occupancy in Thailand decreased by 5 percentage points, and revenue per available room (RevPAR) fell 10 per cent in H2, weighed down by lower international arrivals and domestic and regional political uncertainties.

Revenue from the fee-based segment also dipped 7 per cent to S$40.8 million, primarily due to a lack of fee recognition from Korean branded residences projects.

For the full year ended Dec 31, 2025, Banyan Group’s net profit edged up 1 per cent to S$42.5 million from S$42.1 million in FY2024. Total revenue for FY2025 rose 25 per cent to S$477.4 million, driven by a record year in the residences segment.

Full-year residences revenue surged 90 per cent to S$197.6 million. The hotel investments segment recorded a marginal full-year revenue growth of 1 per cent to S$198.8 million, while the fee-based segment saw a 2 per cent revenue increase to S$80.9 million.

Earnings per share for the full year was S$0.049, up from S$0.0485 the previous year.

The group proposed a first and final one-tier tax-exempt cash dividend of S$0.0135 per ordinary share for FY2025, up from S$0.0130, subject to shareholder approval.

Looking ahead, Banyan Group noted it has S$604.4 million in unrecognised revenue from its residences segment, with over 30 per cent expected to be recognised in 2026. The group also highlighted the milestone opening of its 100th resort, the Mandai Rainforest Resort by Banyan Tree in Singapore in 2025.

Shares of Banyan Tree rose 1.6 per cent to close S$0.01 higher at S$0.655 on Friday, before the results.