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LifeBrandz net loss widens to S$599,000 in Q2

LIFESTYLE group LifeBrandz has posted a net loss of S$599,000 in the three months ended Jan 31, widening 18 per cent from a net loss of S$510,000 in the same period a year earlier.

Revenue in the second quarter rose 65 per cent to S$1.5 million, but total expenses also jumped 50 per cent to S$2.15 million.

The increase in revenue was mainly due to increase in food and beverage (F&B) revenue of S$800,000, partially offset by decrease in travel booking service revenue of S$200,000.

Loss per share was 0.12 Singapore cents, against a loss per share of 0.26 Singapore cents in the same period last year, owing to an enlarged share base.

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Net asset value per share was 0.32 Singapore cents as at Jan 31, down from 0.65 Singapore cents as at July 31 last year.

Lifebrandz said that it remains cautious on the outlook for the travel and F&B industries: "The board is mindful of the intense competition of these industries, tight labour supply and increasing costs.

"The company may explore fund raising exercises, including rights issues, to strengthen its cash position for future business expansions and further business diversification."

It added that it will seek opportunities to expand its presence by way of acquisitions and forming new joint ventures with potential partners.

The group said: "In addition to Hashida Sushi restaurant in Singapore which was opened in the first quarter, we expect another new high-end sushi restaurant in San Francisco, which we partner with Office Hashida via a joint venture agreement, to be operational by March 2019."

It added: "This new restaurant, namely Zorokuyuzan San Francisco, is helmed by chef Yuzan Kotaka, who was trained under the legendary chef Sanshichi Okajima in Tokyo and ran the famous Zoroku Sushi in Ropponggi, Tokyo for 31 years. The group is also looking to open two more high-end Japanese restaurants overseas in the near future."

The group said it is in the process of expanding its travel business by extending services to both inbound domestic tours in Japan and overseas travellers from Japan to other countries.

It has also put the operations of the fintech business under Finesse Digital on hold after considering the departure of the head of the fintech business, and the fact that it has been loss-making, it said.