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BreadTalk Q2 net profit up 10.5% to S$2.4m

BREADTALK Group's net profit rose 10.5 per cent to S$2.4 million for the second quarter ended June 30, from S$2.2 million in the year-ago period, it announced on Wednesday after the market closed.

Revenue for the quarter was flat at S$148.8 million, compared to S$147.7 million in the year-ago period. Growth in the Food Atrium, restaurant and 4orth Food Concepts divisions made up for a 5.2 per cent decrease in revenue from the bakery business, attributed to lower revenue from directly-operated stores in Shanghai, Beijing and Hong Kong, and franchise stores in China.

Earnings per share were 0.43 Singapore cent, compared to 0.39 Singapore cent for Q2 2017.

BreadTalk has recommended a special dividend of 0.5 Singapore cent per share for FY2018, to be paid on Aug 21.

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With the latest results, BreadTalk's first-half net profit was down 72.2 per cent from a year ago, at S$3.6 million. Its first-half revenue was flat at S$297.4 million, compared to S$295.4 million previously.

The group said it would stay focused on leveraging technology to improve efficiency, cost management, and increasing the reach of its brands in existing and new markets. It will also continue developing its pipeline of new brands, preparing for launches in 2019.

"We expect short-term earnings volatility as certain capital and operating expenditures will need to be incurred and invested to realiseour medium to long-term goals. We are also mindful of the potential impact that volatility in some key currencies may add to our financial performance," said the group.