Tung Lok Restaurants (2000) announced today a net attributable profit for the six months ended 30 September (1HFY11) of $322,000, reversing a loss of $871,000 a year earlier, as revenue rose in line with economic recovery and the opening of five new outlets in Singapore.

The Singapore Exchange Catalist-listed restaurant chain said the net profit was achieved on the back of a 25% rise in revenue to $44.3 million in 1HFY11 from $35.6 million in 1HFY10 as consumer confidence in Singapore increased.

Tung Lok’s bottom-line was also lifted by improvements in operational and cost efficiency as the group stepped up central procurement and central kitchen functions while introducing more automation processes in its Singapore operations. Gross profit rose 24% to $30.3 million in 1HFY11 from $24.5 million in 1HFY10.

It reduced its share of loss of joint-ventures from $125,000 in 1HFY10 to $69,000 for 1HFY11. It recorded a share of profit from associates of $140,000 compared to a loss of $23,000 a year earlier, due to better performance from China outlets.

Tung Lok recorded earnings per share of 0.23 cent for 1HFY11 compared to a loss per share of 0.62 cent in 1HFY10 while Net Tangible Asset per share increased to 4.36 cents as at 30 September 2010 compared to 4.06 cents as at 31 March 2010.

On the outlook, Tung Lok’s Executive Chairman Andrew Tjioe, says the group will continue to increase automation processes at its central kitchen in Singapore to reduce manpower costs and better utilisation of raw ingredients. He also says the performance of the China outlets is expected to improve.

The group’s second-half performance in the October-March period, which coincides with year-end and Lunar New Year festivities, is expected to be better than the April-September first half of the financial year.