(Nov 13): BreadTalk Group is seeing improved profitability following consolidation of some of its underperforming outlets, which has enabled it to declare a dividend with its 3QFY2017 earnings report. Some analysts are now also expecting the company to declare a special dividend after chalking up gains from a series of property sales.
On Nov 6, BreadTalk said its earnings for the nine months to Sept 30 rose 139.5% y-o-y to $16.8 million on a 2.6% y-o-y decline in revenue to $449.5 million. The big jump in earnings was partly owing to non-recurring gains. The divestment of the group’s investment in TripleOne Somerset saw $9.3 million in net capital gain recognised in 1QFY2017, while that of 112 Katong Mall saw $8.8 million recognised in 1QFY2016. For the nine months, the company reported a 9.1% y-o-y rise in earnings before interest, taxes, depreciation and amortisation to $64.9 million.