SINGAPORE (Aug 19): RE&S Holdings, the Japanese multi-brand food and beverage group, reported full-year earnings to $4.0 million, some 13.3% higher than earnings of $3.6 million a year ago, despite 4Q19 earnings falling 32.9% to $0.6 million.

For FY19, revenue fell by a marginal 0.9% to $141 million from $142.3 million in the preceding year, as revenue from the full-service restaurants segment declined 3.0% on the back of renovations at Kuriya Dining and closure of Great World City outlets.

The decline was partially offset by an increase in revenue from Quick-Service Restaurants, Convenience and Others segment of 4.5%, growing from $39.9 million in FY18 to $41.7 million in FY19 mainly due to contributions from the Group's concepts of Kuriya Japanese Market and Ichiban Bento.

The group’s operating income more than doubled to $2.8 million from $1.3 million in FY18, due to the compensation received from landlord for the outlets at Great World City in relation to major enhancement works of the mall.

For FY19, operating lease expenses increased 2.2% to $24.9 million due to incremental rates, while utilities expenses increased 6.6% to $4.4 million on the back of increased tariffs.

Depreciation expenses for the year however decreased 5.5% to $8.1 million due the closure of outlets at Great World City.

As at end June, cash and cash equivalents for the year stood at $16.0 million.

The group has also proposed a first and final dividend of 0.45 cent, representing a payout ratio of 40% of the group’s FY19 net profit.

Despite the continuous challenges driven by intensifying competition and higher cost pressures posed by tighter labour and rental markets, RE&S says it is confident of overcoming the challenges through expansion via strategic partnerships and seeks to further improve labour shortage issues by implementing digitalised solutions.

Shares in RE&S closed 0.1 cent lower at $0.17 on Monday prior to the announcement of results.