BreadTalk Group loses SG$5.2m in FY 2019
Only the company’s restaurant division showed profit growth.
BreadTalk Group reported a loss after tax of SG$5.2 million (US$3.7m) in FY 2019, compared to S$15.2m (US$10.9m) which it had earned over the past year.
The profit loss is further reflected in two of its business divisions, namely, the Bakery and new concepts segments.
The group’s Bakery division lost SG$13.5m (US$9.6m) in the year, compared to its profit gain of SG$5.2m (US$3.7m) in FY 2018, due to “premature” outlet closures, widening operating losses in its China and Hong Kong operators, as well its “loss-making” Thailand business, which was recently consolidated upon the acquisition of a half an interest in Minor Food Group’s BTM Ltd.
Moreover, the new concepts segment continued to operate at a loss, having a SG$10.8m (US$7.7m) profit loss in FY 2019, extending its profit loss of S$3.9m (US$2.8m) from the previous year, attributed to start-up costs for its new outlets and “below expectation” performance in certain outlets.
Last year, the company’s pork rib dish restaurant Song Fa Bak Kut Teh started trading in China’s Beijing and Guangzhou and Thailand’s Bangkok.
The group’s Food Atrium division posted sluggish profit growth, earning S$13.5m (US$9.6m) in the year, compared to 2018’s S$16.8m (US$12m) profit, due to “weaker” profitability in its China and Hong Kong businesses, and losses in Taiwan and Cambodia.
Meanwhile, only the company’s restaurant division showed profit growth, up 0.2% year-on-year to SG$23.4m (US$16.7m) on the back of “strong” performance in its Singapore operations.
Last year, the business saw the addition of six outlets in its portfolio, four in Singapore and two in Thailand.
BreadTalk group saw a revenue jump of 9% year-on-year to S$664.9m (US$475.2m) in FY 2019.
Recently, major shareholders of the company announced its upcoming exit from Singapore Exchange Securities Trading upon launching a voluntary conditional cash offer to acquire all of its issued ordinary shares for US$0.77 apiece.
