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TungLok leverages on healthy balance sheet to stay relevant in challenging market
TO stay relevant in a challenging food and beverage (F&B) market in Singapore, TungLok Restaurants will be leveraging on its healthy balance sheet to explore suitable investment opportunities that can add value to its business.
The group said in a Singapore Exchange filing on Monday morning that it has accelerated efforts "to refresh dining concepts and streamline operations with a view to optimising costs while delivering differentiated values to customers".
To drive further growth, TungLok will focus on the following strategies: rolling out promising brands to new geographical markets to reduce overdependence on Singapore, currently its key market; expand services and capabilities to offer greater convenience and choice to consumers in Singapore with an eye on younger diners; and streamline operations further through innovation, automation and other efforts to promote productivity at kitchen and service levels.
TungLok achieved a successful turnaround in FY2015 and was profitable in FY2016 and FY2017, it said.
Its balance sheet has also been strengthened and as at March 31, the group has net working capital of S$8.6 million and cash and bank balances of S$15 million. Its gearing ratio improved to 0.21 times in the same period.
TungLok, which specialises in Chinese cuisine, operates a total of 46 restaurant outlets, comprising 26 that are directly owned by the group, nine held by its associates and 11 under franchising/licensing contracts. These outlets are spread across Singapore, Indonesia, Japan, China and Vietnam.
Currently, the group operates more than 20 F&B brands and has a catering arm that provides outdoor and institutional catering services. It also has manufacturing facilities that produce dim sum, mooncakes, rice dumplings and festive goods.