Pace Development Corporation Plc yesterday reported a consolidated net loss of 961.7 million baht in the third quarter, widening 20% year-on-year, because of a decline in gross profit of the company's food and beverage business.
The net loss was 798.7 million baht in the same period last year.
The majority of the net loss worth 875 million baht came from the company's food and beverage business, Pace said in a statement filed with the Stock Exchange of Thailand (SET).
"Gross profit for Dean & DeLuca US was 260 million baht, representing a 7% decrease in gross profit year-on-year because of a challenging US retail environment, higher food costs, a changing product mix, and [this year's] carry-over benefit of US$700,000 from Japan's perpetual licence deal," the statement said.
Total revenue in the third quarter was 2.13 billion baht, up 168% year-on-year from 796 million.
"This was mainly because of increased revenue from the property business, specifically The Ritz Carlton Residences Bangkok had 1.36 billion baht from the transfer of 27 residences, as well as higher revenue from food and beverages at Dean & DeLuca worth 702 million baht, and revenue from other income, including trademark and trade name fees of Dean & DeLuca [worth] 70 million baht," the statement said.
Pace also reported a net profit of 3.77 billion baht in the first nine months, up from a net loss of 1.37 billion a year earlier.
Pace Development is a high-end property developer, with projects such as MahaNakhon Tower along with residential projects like MahaSamutr, a luxury resort project in Hua Hin, and condo Nimit Langsuan, which are worth 20 billion baht.
Pace has been saddled with massive debt after using short-term debt instruments in the capital market to fund long-term investments. The company plans to raise funds through recapitalisation and the sale of two residential projects whose acquisition value could be 14.5 billion baht.
Pace signed a memorandum of understanding on the sale of the entire Nimit Langsuan development as well as the remaining unsold units, plus 25% of the total units at The Ritz-Carlton Residences Bangkok in the MahaNakhon building, to Sansiri Plc, which is now conducting due diligence.
The SET yesterday suspended trading of Pace shares because the company's auditor could not reach a conclusion on income estimation of the company's projects that were neither completed nor had started business operations.
"As the auditor cannot reach a conclusion on its Sept 30 financial statement, the SEC may require an amended statement," the SET said.