RE&S Holdings posts Q2 net profit of S$1.1m

JAPANESE food and beverage (F&B) group RE&S Holdings Limited posted a net profit of S$1.1 million for the second quarter ended Dec 31, down 21.3 per cent from S$1.4 million a year ago.

Excluding the one-off IPO expenses of approximately S$1 million, the group recorded a net profit after tax of S$2.1 million in 2Q FY2018, or a 51.5 per cent increase compared to a year ago.

This is its first results release since its listing on the Catalist board on Nov 22, 2017.

Revenue went up 2.9 per cent to S$37 million, mainly attributed to an increase in revenue from its Quick-Service Restaurants, Convenience and Others segment due to the opening of a Japanese food alley.

Earnings per share stood at 0.31 cent for the quarter, down from 0.39 cent previously.

No dividend was declared for the quarter.

In a filing to the Singapore Exchange, the group said that the challenges in the F&B industry are expected to persist, given intensifying competition and higher cost pressures posed by a tighter labour and rental market.

The group said it remains committed in expanding its businesses both organically and through strategic acquisitions, joint ventures or alliances while seeking to streamline operations and cut costs.

For the Singapore operations, the group opened a new Ichiban Sushi outlet at West Mall during December last year, with plans to add another outlet at Compass One by February this year.

Other than the Full-Service Restaurants, the Quick-Service, Convenience and Others segment is another key area, said the group. It will explore opportunities to expand its network of Food Retail Outlets.

It also intends to improve operational efficiencies by further streamlining its production process at its F&B outlets. Together with support from its central kitchen, the group seeks to obtain greater manpower utilisation and improve productivity in its businesses, the company said.

In a separate announcement, the group also said Lim Ho Seng, independent director and chairman of the board, has resigned. Deputy chairman Ben Yeo Chee Seong will succeed Mr Lim as board chairman.