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BreadTalk Q1 net profit plummets 89% on absence of divestment gain
THE absence of a one-time divestment gain dented results for BreadTalk Group in its first quarter.
Net profit plunged 89.1 per cent to S$10.8 million from the previous year, the group said in a Singapore Exchange filing on Thursday evening.
BreadTalk had in the first quarter of 2017 recognised S$9.3 million in capital gain from the sale of its investment in TripleOne Somerset.
In the first quarter of this year, it also brought forward the early closure of eight bakery outlets in China and one food atrium outlet in Hangzhou.
For the three months ended March 31, revenue crept up 0.5 per cent to S$147.7 million from the year-ago period as the group cautiously restarted outlet expansion after two years of consolidation.
Earnings per share dropped to 0.42 Singapore cent from 3.84 Singapore cents in the previous year.
BreadTalk said it will stay focused on deepening the penetration of existing markets, and leverage its regional platform to bring more new food concepts and brands into its portfolio to drive growth.
"The management team continues to reiterate our commitment to build a strong foundation for the next leg of growth for the company so that it will be sustainable in the long term," it said.
"We expect short-term earnings volatility as certain capital and operating expenditures will need to be incurred and invested to realise our medium- to long-term goals."