BreadTalk posts 10.5% increase in 2Q earnings to $2.44 mil on higher interest income

BreadTalk posts 10.5% increase in 2Q earnings to $2.44 mil on higher interest income

Samantha Chiew
01/08/18, 11:03 pm

SINGAPORE (Aug 1): BreadTalk today announced that its 2Q18 earnings have increased by 10.5% to $2.44 million from $2.20 million in 2Q17 on higher interest income.

In a media release issued on Wednesday, the group also attributed its increase in earnings to its effective cost management and diversity of brand portfolio.

This brings 1H18 earnings to $3.62 million, 72.2% lower than $13.0 million in 1H17, mainly due to higher expenses.

Revenue for the quarter saw a slight increase of 0.8% to $148.8 million, compared to $147.7 million a year ago, driven by growth by the group’s Food Atrium, Restaurant and the 4orth Food Concepts divisions. These three pillars of growth helped to equalise the sub-optimal Bakery Division’s performance.

Revenue for the Food Atrium division saw a 4.0% y-o-y increase to $38.8 million, driven by strong same store sales growth momentum across the entire tenant mix portfolio, especially in China.

The Restaurant division saw revenue increase by 7.1% y-o-y to $37.3 million as the group opened three more outlets during the period, bringing its total number of outlets to 27.

4orth Food Concepts revenue increased 53.0% y-o-y to $3.0 million, which comprises of five outlets of So Ramen in Singapore, two outlets of Song Fa Bak Kut Teh and one outlet of Una-Yu in Shanghai, China.

Revenue for the group’s Bakery division dropped 5.2% y-o-y to $68.6 million, mainly due to lower revenue from its direct operated stores in Shanghai, Beijing and Hong Kong, and franchise revenue from China.

Gross profit came in at $83.2 million 0.7% higher than $82.7 million last year.

Interest income saw a 297% jump to $1.18 million, compared to $0.30 million in the previous year.

Interest expenses also increased by 111.7% to $2.42 million from $1.14 million a year ago.

As at June 30, the group’s cash and cash equivalents stood at $206.6 million.

The group is declaring an interim cash dividend of 0.5 cent which will be payable on Aug 21.

Looking ahead, the group says that it will stay focused on leveraging technology to improve its operational efficiency, cost management and increasing the reach of its portfolio of brands into existing and new markets. In addition, the group will also continue to develop its pipeline of new brands and getting them ready to launch in 2019.

Shares in BreadTalk closed 1 cent higher at $1.17 on Wednesday.

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion — especially in the rollout of the next generation 5G wireless network globally — in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with ....

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....