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Sakae Holdings' half-year profit down nearly 35% on lower revenue, increased expenses

Sakae Holdings building in the Tai Seng area.

FOOD and beverage (F&B) group Sakae Holdings' net profit for the half year ended June 30 slumped nearly 35 per cent year on year to S$1.67 million.

Revenue slid 2.8 per cent to S$48.84 million year on year, hit by tough competition in the Singapore F&B industry as well as the weaker Malaysian ringgit, the implementation of the goods and service tax, and political instability.

Meanwhile, earnings per share clocked 1.2 Singapore cents, down from 1.83 cents previously.

Cost of sales edged up 4 per cent to S$15.63 million, which contributed to a gross profit of S$33.21 million, or 5.7 per cent lower.

No dividend was declared for the financial period. In the corresponding period a year ago, it paid out an interim dividend of 0.5 Singapore cent per share.