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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.

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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.