BreadTalk posts 11% rise in Q1 net profit

BREADTALK Group posted a 11 per cent increase in net profit to S$2.0 million for the first quarter ended March, from S$1.8 million a year ago.

Revenue rose 8.6 per cent to S$152.45 million from S$140.42 million with all divisions recording an improvement.

Excluding Thailand, which transferred its business to a new joint venture last year, the bakery division saw a 11.3 per cent rise in revenue.

Net profit from the bakery division dipped largely due to lower profitability from mainland China and underperforming stores in Malaysia as well as escalating operating cost in Singapore.

Revenue in the food atrium division gained 7.8 per cent, led by further growth in Hong Kong and recovery in Thailand and Taiwan.

However, the division reported a net loss mainly due to some underperforming stores in mainland China and higher rental and labour cost in some newly opened outlets.

BreadTalk's restaurant division saw revenue grow 13.2 per cent mainly due to Din Tai Fung in Singapore and Thailand, which was offset by lower revenue in Ramen Play following the closure of six non-performing stores last year.

Net profit from the restaurant business improved significantly due to better contribution from Din Tai Fung and also lower losses from Ramen Play.

Earnings per share stood at 0.71 Singapore cent, up from 0.64 Singapore cent a year ago.

No dividend was recommended for the period, the same as the previous corresponding quarter.