BreadTalk's 3Q earnings fall 41.7% to $2.1 mil on higher expenses

BreadTalk's 3Q earnings fall 41.7% to $2.1 mil on higher expenses

Michelle Zhu
05/11/18, 07:46 pm

SINGAPORE (Nov 5): BreadTalk Group posted earnings of $2.1 million for the 3Q ended Sept, 41.7% lower compared to its earnings of $3.7 million a year ago on the back of higher expenses. 

The lower y-o-y profit was mainly attributed to one-off costs associated with the group’s opening of its Din Tai Fung business in London and other businesses, as well as certain underperforming segments of the Bakery Division which is in the process of undergoing restructuring.

Revenue for the quarter nonetheless grew to $157.7 million, up 2.3% on-year from revenue of $154.1 million in 3Q17.

The overall improvement in quarterly revenue was led by growth from the the Food Atrium and Restaurant Divisions as well as contributions from its newest division, 4oth Food Concepts, offset in part by lower revenue from the Bakery Division.

Distribution and selling expenses for 3Q grew 4.7% to $62.1 million from $59.2 million a year ago.

Interest expense doubled to $2.4 million from $1.1 million the previous year amid a rising interest rate environment.   

Meanwhile, administrative expenses widened by 34.1% to $28.6 million from $21.4 million previously.

For 9M18, earnings were down more than half to $6.1 million as compared to 9M17 earnings of $15.4 million in the absence the previous year’s divestment gain from BreadTalk’s divestment of its interest in TripleOne Somerset.

Excluding the divestment gain, core net profit for 9M18 would have been 5.2% higher y-o-y.

Henry Chu, CEO of BreadTalk, says the group continues to build its pipeline for future growth as it enters into strategic joint ventures for its F&B businesses, as well as invests in its support infrastructure.

Commenting on the group’s revenue growth booked for 3Q, Chu says: “This bears testament to our long term strategies of ‘Consolidate Current, Grow New’, which will bear fruit in time to come. My team will continue to stay focused and work hard to deliver the value to our shareholders.”

Shares in BreadTalk closed 2.6% lower at 92 cents on Monday. 

Metro bets on decentralised office market with $45.6 mil investment in Tampines property

SINGAPORE (April 18): Metro Group has acquired 7 & 9 Tampines Grande, a premium Grade A office property in Singapore, through a 50:50 joint venture (JV) between its subsidiary Metrobilt Construction and an affiliate of SRIF GP. On its part, Metro will be investing about $45.6 million for its 50% capital commitment share. Through the newly-incorporated JV company, Ascend TGrande, both Metro and SRIF have agreed to purchase T-Grande Investment Holding from Golden Crest Holdings, a wholly-owned subsidiary of City Developments. T-Grande Investment Holding is the owner of T-Grande Prop....

Keppel Corp posts 40% drop in 1Q earnings to $203 mil on lower one-off gains

SINGAPORE (Apr 18): Keppel Corporation saw its earnings fall 39.9% to $202.9 million for the 1Q19 ended March, from $337.5 million a year ago. The decline was mainly attributable to the absence of a $289 million gain in 1Q18 arising from the en bloc sale of Keppel Cove in Zhongshan, China. In 1Q19, the group recorded gains of $174 million from the divestment of a 70% interest in Dong Nai Waterfront City, Vietnam and the re-measurement of previously held interests in M1 at acquisition date Consequently, other operating income was halved to $145.6 million in 1Q19, from $300.0 million a ....

UOI 1Q earnings more than double to $11.4 mil

SINGAPORE (Apr 18): United Overseas Insurance (UOI), the insurance arm of United Overseas Bank (UOB), reported 1Q19 earnings increased 153% to $11.4 million, compared to $4.5 million in 1Q18. Gross premium written saw a 2.5% increase to $27.9 million from $27.2 million a year ago, mainly due to an increase in fire and reinsurance classes of insurance. Underwriting profit was 16.1% higher at $5.9 million compared to $5.0 million last year, mainly due to a 29% y-o-y increase in net commission, as a result of higher reinsurance commission recoveries from reinsurers. During the quarter, t....