RE&S Q3 net profit slides 55% to S$0.86m

CATALIST-LISTED food and beverage operator RE&S Holdings Limited posted a 55.3 per cent fall in net profit to S$859,000 for the third quarter as earnings per share sank to 0.24 Singapore cent from 0.54 Singapore cent in the year-ago period.

For the three months ended March 31, revenue increased 2 per cent from S$34.6 million in the previous year to S$35.3 million.

This increase was mainly due to growth in the quick-service restaurants, convenience and others segment, which contributed S$9.8 million to the group's total revenue, RE&S said.

Net asset value per share rose to 9.81 Singapore cents as at March 31, from 6.98 Singapore cents nine months ago.

Said John Yek, executive director and chief executive officer, RE&S: "The group continues to face headwinds from the combined challenges of rising competition and tightening labour market. Revenue is healthy despite lower-than-expected results, due to initial gestation for new concepts and new outlets which impacted near-term profitability.

"We will continue to focus on improving these outlets, as well as selective new outlet openings based on our established concepts. We aim to deliver a better performance for the remaining fiscal year and ultimately derive greater value for our shareholders," he added.

RE&S shares ended S$0.015 or 6.5 per cent up at S$0.245 on Monday before the results announcement.