Old Chang Kee sinks into the red for Q4

FOOD & beverage chain Old Chang Kee posted a loss of S$2.1 million for the fourth quarter ended March 31, 2017, versus a net profit of S$1.09 million a year ago, as gross profits were weighed down by other expenses.

Revenue for the fourth quarter rose 8.7 per cent year on year to S$19.23 million while loss per share came to 1.73 Singapore cents, compared to earnings per share of 0.9 Singapore cent a year ago.

For the full year, revenue increased 6.1 per cent to S$78.35 million on the back of contributions from new outlets. Net profit fell 64.9 per cent to S$1.75 million.

Old Chang Kee said: "The group expects operating lease expenses (rental) and labour and raw material costs to remain high in the next reporting period and the next 12 months, and believes that the labour market will continue to remain tight."

It added that it will be integrating its factory in Iskandar Malaysia and its expanded factory facilities in Singapore at Woodlands Terrace in the coming months. "These will provide the group with a platform to expand its product range and grow its business both locally and regionally," it said.

The group is proposing a final dividend of 1.5 Singapore cents per share, similar to a year ago. However, the previous financial year also included a special dividend of three Singapore cents per share.