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Goodman Group FY profit slumps

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By a staff reporter

Property and funds management firm Goodman Group Ltd is predicting growth of nine per cent in operating profit for the current year despite posting a dramatic slump in full-year profit on the back of a huge hit from currency and derivative movements. 

In the full year to June, Goodman made a net profit of $161 million, 60.6 per cent lower than the $408.3 million recorded in the previous corresponding period.

The slump was driven in large part by a $293 million hit taken on derivative and foreign exchange movements. 

It came despite a 21.2 per cent rise in revenue to $1.14 billion, from $944.5 million in the prior year. 

Operating profit increased to $544.1 million from $463.4 million. 

Goodman is predicting a 9 per cent rise in operating profit for the 2013-14 year to $594 million. 

It will pay a final dividend of 9.7 cents on 26 August, pushing the total payout to 19.4 cents, up 8 per cent on the prior year.

Goodman had $23 billion of assets under management at the financial year end, a 15 per cent increase on 2011-12. 

Australia accounted for 52 per cent of the group's operating earnings, while Europe and the Asia Pacific each delivered a 24 per cent share. 

Growth was being driven by entry into Asia and the Americas, the group said, while demand for "core, high quality, stable yielding real estate remains strong from global pension and sovereign funds". 

At 1500 AEST, shares in the group increased 0.42 per cent to $4.80, against a benchmark fall of 0.14 per cent. 
Quick Summary: 
Group takes hit on derivative, foreign exchange movements, predicts strong operating profit growth in FY14.
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