BreadTalk Group Q4 net profit soars 82.5% to S$8.88m

Published Tue, Feb 19, 2019 · 02:10 PM
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BREADTALK Group on Tuesday posted a net profit of S$8.88 million for the fourth quarter ended Dec 31, up 82.5 per cent from a restated net profit of S$4.87 million a year ago.

Revenue ticked up 3.1 per cent to S$154.77 million in Q4.

Earnings per share stood at 1.58 Singapore cents, up from a restated 0.86 cent previously.

For the full year, BreadTalk Group's net profit fell 29.9 per cent to S$15.19 million, compared to a restated net profit of S$21.68 million a year ago, on the absence of capital gains from the divestment of the group's investment in TripleOne Somerset in FY17. Share of results of associates and joint ventures was also weaker in FY2018.

Revenue inched up 1.7 per cent to S$609.8 million for the full year, led by growth from the Food Atrium and Restaurant Divisions as well as contribution by the 4orth Division, which comprises five Sō Ramen, one TaiGai and one Nayuki outlets in Singapore, four Song Fa Bak Kut Teh and one Wu Pao Chun Bakery outlets in China.

Earnings per share for FY2018 was 2.70 Singapore cents compared to a restated 3.85 cents for FY2017.

Dividend is 1.50 cents for FY2018, compared to 3.50 for FY2017.

In its outlook, the group said that it is "mindful of the significant headwinds" faced in its bakery business.

Revenue in the bakery division declined 5.1 per cent to S$282 million during FY2018, attributed to lower revenue from direct operated stores in Shanghai, Beijing and Hong Kong, as well as lower franchise revenue from China. But this was mitigated by stronger revenue from direct operated stores in Singapore and higher international franchise revenue.

"Starting FY2019, we adopted a more aggressive stance to turn around the business and it will be all hands on deck for the team, with the group CEO personally leading the efforts," said the group.

"Our centralised procurement efforts have been gaining notable traction in delivering cost savings. Lastly, greater efforts have also been placed in R&D to create a stronger pipeline of products that will help drive revenue."

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