LifeBrandz posts S$6.7m annual loss

CATALIST-LISTED lifestyle investor LifeBrandz posted a net loss of S$6.7 million for the year ended July 31, widening from a net loss of S$3 million a year ago.

Revenue fell 39 per cent year-on-year to S$3.4 million, down from S$5.57 million, on the back of lower revenue from its food and beverage (F&B) as well as travel booking services.

Loss per share for the year increased to 1.17 Singapore cents, from 0.62 Singapore cent.

LifeBrandz, a holding company for various F&B, fintech and travel brands, attributed the fall in F&B revenue primarily to the closure of Japanese restarants Hashida Sushi in Singapore and Sushi Nagai in the US in April and May 2020, respectively.

Impairment losses on fixed assets and right-of-use assets due to the two closures also contributed to the widening overall loss.

Travel booking revenue also took a beating due to the shutdown of global travel as local governments sought to control the spread of Covid-19.

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Across the year, F&B revenue fell 27 per cent while travel booking revenue fell 59 per cent.

LifeBrandz said it is working on restructuring its debts and is negotiating with various stakeholders on debt deferments, while reaching out to potential investors for fundraising.

It expects that performance will continue to be adversely affected by the pandemic. "The F&B industry is currently fraught with challenges brought about by the Covid-19 outbreak, which impacted the business in Singapore, the United States, Japan and Thailand," it said.

"The board expects the business and financial performance of the group to continue to be adversely affected, depending on the duration of the Covid-19 pandemic, when borders will reopen for general travel, and also the lifting of social distancing measures to boost dining-in capacity and demand."

LifeBrandz shares closed up 5.3 per cent at S$0.02 on Tuesday, after results were filed.