BreadTalk posts 61.9% jump in Q2 profit

BREADTALK Group posted a 61.9 per cent jump in net profit for the second quarter ended June 30 to S$2.11 million.

This came on the back of an 18.7 per cent rise in other income to S$5.68 million and a reduction in interest and administrative expenses. Revenue slipped 1.5 per cent to S$147.57 million.

The group said that the higher earnings were achieved by its consistent focus on evaluating and streamlining existing portfolios while maximising growth opportunities in more profitable business segments.

Its net profit for the six months ended June 30 more than tripled to S$12.8 million from S$3.75 million a year ago despite a 3 per cent decline in revenue to S$295.2 million.

"We are committed to streamline existing portfolios and identify new growth opportunities," said BreakTalk Group chairman George Quek. "This places the group in a strong position to rise above the difficult retail environment."

The group said that it remains on course to consolidate underperforming operations and expand its footprint in high performing markets.

While new outlet openings remain at a cautious pace, the group will continue to focus on improving overall profitability and quality of earnings for fiscal 2017, it added.

The Board is recommending a tax-exempt interim dividend of one Singapore cent per share for the first half of 2017, up from 0.5 cent in the year-ago period. The interim dividend will be paid to shareholders on Aug 31.