BreadTalk Group Q4 net profit soars 82.5% to S$8.88m
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."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Keppel DC Reit reports 13.7% lower Q1 DPU of S$0.02192 amid loss allowances
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece
Singapore shares open higher on Friday; STI up 0.2%
TSMC estimates losses of US$92.4 million due to Taiwan earthquake
Singapore loses ‘world’s best airport’ crown to Qatar
Higher gross rental income, lower expenses boost CICT’s Q1 NPI by 6.3%