SINGAPORE (May 8): Soup Restaurant Group, the operator of a chain of restaurant outlets under the same name, reported 1Q earnings of $0.59 million or 0.21 cents per share.

This was 22.4% lower compared to a year ago on higher depreciation due to new Singapore Financial Reporting Standards SFRS(I) 16 Leases.

Revenue rose 7.2% or $0.8 million to $11.9 million. This was due to an increase in revenue from existing outlets and online delivery services of $0.2 million and a net increase in revenue from the opening and closure of outlets of $0.5 million due to mall refurbishment.

Revenue for the food processing, distribution and procurement services segment also increased by $0.1 million.

Other income increased 12.3% to $0.17 million mainly related to a writeback of expired vouchers.

Purchases and other consumables rose 8.1% to $2.6 million, making up 22% of revenue compared to a year ago.

Employee benefits expense increased by $0.3 million or 7.0% to $4.1 million mainly due to the net increase as a result of the opening and closure of outlets as well as the set-up of a new catering kitchen located at Enabling Village in November 2018.

Depreciation and amortisation expenses jumped more than fivefold to $2.2 million mainly due to depreciation of right-of-use assets incurred upon the recognition of the right-of-use assets as a result of the adoption of SFRS(I) 16 Leases.

In its outlook statement, Soup Restaurant says the group will continue to focus on strengthening its brands with plans for the rejuvenation of some of its outlets in Singapore.

The group will also continue to bring our food offerings to more customers through online delivery platforms from all its outlets.

At the same time, the group will continue to manage the operations of our restaurants more effectively.

As at end March, the group’s net asset value per share stood at 4.13 cents. Shares in Soup Restaurant closed at 18 cents on Wednesday.

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