You are here
Hot stock: BreadTalk shares fall 8% on net loss warning for FY2019
SHARES of BreadTalk Group dived 8 per cent just half an hour after the market opened on Friday after the company warned of a fiscal 2019 net loss on Thursday after trading hours.
The mainboard-listed food and beverage player saw its share price drop 5.5 Singapore cents to S$0.635 as at 9.30am on Friday, trading at its lowest price this week. On Thursday, the counter closed at S$0.69.
BreadTalk said on Thursday in a profit guidance that it expects a net loss for fiscal 2019 due to weakness in its bakery and food concept divisions, coupled with turmoil in Hong Kong.
Widening losses at its bakery business in China and Thailand, as well as from several brands within its 4orth food concepts division, including Wu Pao Chun, Song Fa, Tai Gai and Nayuki, are likely to have contributed to the expected poor performance.
The group is also expecting a hit from "significant deterioration" in the financial showing of its Hong Kong business, in both the bakery and food atrium divisions due to the ongoing social unrest.