Glomac

Property developer, Glomac, announced its fy 2005 Q2 quarterly earnings last nite.

Quarterly rpt on consolidated results for the financial period ended 31/10/2005

Sales 75.236 million
Net Profit 9.811 million

Which was significantly higher than its fy 2005 Q1 earnings.

Sales 46.507 million
Net Profit 4.367 million

Great improvement from its fy 2005 Q1 earnings. This good performance drew a nice write-up in the Business Times today: Glomac Q2 net more than doubles

So what's wrong with the rosy picture painted?

Well if we were to compare the fy 2005 half-yearly results versus same period fy 2004 half-yearly results, we get the following:

Sales 121.743 million versus 130.904 million
Net Profit 14.178 million versus 20.274 million.

How? Sales now looks flat, while fy 2005 net profit of 14.178 mil pales in comparison to Glomac's fy 2004 earnings of 20.274 million.

So which is a better yardstick to use?

A quarter-on-quarter (q-q) comparison ? or a year-on-year (y-y) comparison?

Here is the past 7 quarterly net profit performance from Glomac. Read from left to right. (right being the latest quarter).

8.871 mil -> 10.086 mil -> 10.188 mil -> 9.801 mil -> 9.985 mil -> 4.367 mil -> 9.811 mil

How?

How would you want to interpret Glomac's earnings performance?

Yes, Glomac did well for the current reported quarter but would you not agree that its current year-to-date earnings performace still pale in comparison when compared to its previous year earnings?