Sakae Holdings reports Q3 net loss of S$317,000
MAINBOARD-LISTED restaurant operator Sakae Holdings : 5DO 0% sank into the red in the third quarter on a decline in other operating income and gains, as well as the cost of operating expenses.
Sakae reported a net loss of S$317,000 for the 3 months to Mar 31, 2022, against a net profit of S$219,000 in the year-ago period, as revenue fell by 19.3 per cent to S$4.6 million.
That comes even as it managed to maintain its gross profit margin despite rising costs and lower revenue during the pandemic, Sakae said in unaudited financial statements on Sunday (May 15).
The group noted that topline impact was cushioned by a pivot to online orders and delivery services – but that was at the cost of revenue from physical stores, which were reduced.
With Sakae receiving lower rental rebates than in the previous year, other operating income decreased, while other operating expenses rose on the reversal of an earlier impairment loss.
For the 9 months, Sakae chalked up a net loss of S$283,000, against a net profit of S$836,000 previously, on a 22.6 per cent drop in revenue, to S$13.1 million.
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Loss per share was 0.23 Singapore cent for the 3 months, compared with earnings per share of 0.16 Singapore cent before; and 0.20 Singapore cent for the 9 months, compared with earnings per share of 0.60 Singapore cent before.
Net asset value stood at 39.01 Singapore cents a share, against 40.45 Singapore cents as at Jun 30, 2021.
Sakae, which counts Singapore and Malaysia as its key markets, warned in its outlook statement that it “expects the operating environment of the food and beverage industry to remain challenging in the next 12 months”, even as Covid-19 restrictions are relaxed.
No dividend was recommended, unchanged from the year before, which the board said was “to conserve liquidity to fulfil the operational and financial requirements of the group amid the uncertainties caused by the Covid-19 pandemic”.
Sakae shares last traded at S$0.108, down by 0.1 cent or 0.92 per cent, before the results.
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