Tung Lok Restaurants H2 profit falls 52.1% to S$853,000 amid F&B industry woes

[SINGAPORE] Tung Lok Restaurants on Friday (May 30) posted a net profit of S$853,000 for its second half ended March, a 52.1 per cent decline from S$1.8 million in the year-ago period.

This translated to earnings per share of S$0.0031, a 52.3 per cent fall from S$0.0065 previously.

Revenue for H2 was down 8 per cent on the year at S$43.6 million, from S$47.4 million, amid lower contributions from its catering business and existing outlets as well as the absence of revenue from three outlets. However, this was partly offset by higher revenue from a new outlet that opened in the second half of FY2025.

Headwinds from a subdued economic outlook and softer consumer sentiment also weighed on overall revenue, the group said. This comes amid a recent exodus of outlets in Singapore’s food and beverage (F&B) scene. The number of business closures hit a 20-year high of 3,047 in 2024; for the first quarter of 2025, average monthly closures crossed 300.

For the full year, Tung Lok sank into the red with a net loss of S$1.8 million, as compared to a S$2 million net profit previously. It recorded a loss per share of S$0.0065, versus S$0.0075 earnings per share previously.

The full-year losses came amid a net loss of S$2.6 million for its first half ended September 2024.

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Full-year revenue dropped 8.7 per cent on the year to S$82.1 million, from S$90 million, driven by lower contributions from its catering business, lower contributions from existing outlets and the loss of revenue contributions from five outlets.

No dividend was declared for the financial year.

In terms of outlook, the group expects the operating landscape for the F&B industry to remain challenging in the coming year, as persistent macroeconomic volatility drags business sentiment.

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Existing industry pressures including rising operating costs, ongoing labour shortages and a growing shift in consumer behaviour towards price sensitivity are set to weigh on profit margins, it said.

Despite the expected headwinds, the group said it is “confident” that it is “well-positioned” to navigate obstacles given the resilience of its business fundamentals. It added that it is streamlining operations, consolidating resources to enhance efficiency, embracing measured risks and remaining proactive in seizing suitable expansion opportunities and innovation as they emerge.

The counter ended Friday unchanged at S$0.085, before the announcement.