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BreadTalk Q3 net profit up 15.6% to S$3.9m
FOOD and beverage play BreadTalk Group has reported a 15.6 per cent rise in net profit to S$3.9 million for the three months ended Sept 30, 2014.
Revenue rose 8.3 per cent to S$154.5 million.
For the nine months ended Sept 30, revenue rose 11.6 per cent to S$434.8 million; net profit rose 3.8 per cent to S$8.3 million.
Sales at its bakery division, which comprises half its business, improved by 10.2 per cent across all markets. But profit after tax and minority interests fell 5.8 per cent from a year ago due to the Singapore and China markets.
"Labour and rental cost pressures in Singapore, the gestation of new store concepts and the cost impacts on the closure of five outlets affected performance," the company said.
Revenue at its restaurant division rose 13.5 per cent, boosted by Singapore's Din Tai Fung outlets.
Its food court segment saw revenues rising by 17.9 per cent, led by China, Hong Kong and Singapore. There were higher margins in Hong Kong and lower losses in Thailand, offset by lower profitability in Singapore and losses in Taiwan.
The company said that its bakery division "remains focused on fine-tuning its new concept while revamping its product offering for the Singapore market".
Ramen Play, its ramen restaurant chain, will complete its business restructuring exercise before the end of the year.
The food court business in Taiwan should show better performance after the completion of a restructuring exercise, the company said.
BreadTalk fell 1.1 per cent or 1.5 cents to S$1.305 before the results were announced.