SINGAPORE (Aug 3): Bakery chain BreadTalk posted a 23.3% decline in 1H earnings to $3.8 mil from a year ago, on lower revenue from its bakery and Food Atrium businesses.

Total revenue fell 1% to $304.3 million from $307.3 million a year ago.

The weaker topline was the result of a 5% fall in revenue from its Food Atrium businesses to $80.2 million due to start-up expenses of new outlets, outlet closure write-offs, and higher operating expenses; as well as a 2% drop in revenue from the bakery division due to weaker franchise revenue from China.

Conversely, revenue from the group’s restaurant division grew 6.3% higher to $73.5 million due to strong same-store sales growth, recovery at Ramen Play, and higher contribution from Din Tai Fung Thailand.

“Restaurant division continues its steady improvement supported by both same store sales growth and good cost control,” says BreadTalk in a Wednesday filing.

The group says its bakery division remains on its recovery path, and that it intends to continue to moderate the pace of outlet expansion and focus on cost controls and quality of earnings.

And while the Food Atrium division “still faces certain headwinds” in China, BreadTalk claims that the situation is largely under control following the completion of the group’s evaluation process of the respective outlets within its portfolio.

The group has recommended an interim dividend of 0.5 cent.

Shares of BreadTalk closed flat at $1.12 on Wednesday.