RE&S posts 65.3% fall in H2 2023 net profit

FOOD and beverage (F&B) owner and operator RE&S Holdings on Wednesday (Aug 23) posted a 65.3 per cent fall in net profit for its second half year ended Jun 30 to S$2.1 million, from S$6 million in the same period last year.

Revenue in H2 grew 2.9 per cent to S$86.1 million, from S$83.6 million last year. Earnings per share declined to S$0.006 in the period, from S$0.017 in H2 2022.

The group declared a final dividend of S$0.009 per share for H2 2023, bringing the total distribution for the year to S$0.018 per share.

For the full year, net profit was down 19.1 per cent to S$7.6 million. Other operating income fell sharply to S$3.7 million, down 48.2 per cent from S$7.2 million a year ago. This was due to the absence of government and landlords’ support in relation to Covid-19.

Full-year revenue, meanwhile, rose 12.4 per cent to S$174.1 million from S$154.8 million.

“The F&B business landscape has been challenging, and is expected to remain tough due to escalating costs driven by inflationary pressure,” said Fenton Foo, RE&S’ chief executive officer and executive director.

He added that the company has also faced challenges from manpower shortages and difficulty in hiring workers.

In 2023, RE&S opened Singapore’s first Mister Donut under a master franchise, as well as more Gokoku and Yakiniku-Go outlets.

“The group will remain focused on growing our brand presence in the quick-service restaurants, convenience and others segment,” Foo said.

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Shares in RE&S ended Wednesday flat at S$0.295.