BreadTalk Group's net profit up 82.5% in Q4, buys out joint venture partner in Thailand
The company says they have gained "strong momentum" through their joint ventures and partnerships.
Breadtalk Group posted a net profit of SG$8.88 million for the fourth quarter ended December 31, up by 82.5% from a net profit of SG$4.87 million last year.
Revenue rose by 3.1% to SG$154.77 million in Q4. Earnings per share were at 1.58 Singapore cents, up from a restated 0.86 cent.
For FY2018, the group’s net profit fell 29.9% SG$15.19 million compared to a restated net profit of SG$21.68 million previously.
Revenue was up 1.7% SG$609.8 million for the full year, led by growth from the Food Atrium and Restaurant Divisions as well as contribution by the 4orth Division, composed of five Sō Ramen, one TaiGai and one Nayuki outlets in Singapore, four Song Fa Bak Kut Teh and one Wu Pao Chun Bakery outlets in China.
In their outlook, the group says they have gained “strong momentum” through their new growth frontiers along with a series of joint ventures and partnerships in China, India, Indonesia and Cambodia.
Their restaurant team previously opened its first Din Tai Fung restaurant in the United Kingdom and deepened their presence in Thailand. Its 4orth Food Concepts Division was also noted for adding Song Fa Bak Kut Teh, Nayuki, TaiGai, and Wu Pao Chun Bakery to their portfolio.
“The management team is mindful of the significant headwinds that we faced during the year at our Bakery business. Starting FY2019, we adopted a more aggressive stance to turnaround the business and it will be all hands on deck for the team, with the Group CEO personally leading the efforts,” the group said.
"Our centralised procurement efforts have been gaining notable traction in delivering cost savings. Lastly, greater efforts have also been placed in R&D to create a stronger pipeline of products that will help drive revenue."
In a succeeding announcement, BreadTalk has bought out its partner in a joint venture in Thailand, acquiring the remaining 50% interest in the company it does not own from The Minor Food Group (MFG) for 160 million baht (approximately SG$6.96 million).
BTM Thailand, the group’s joint venture with MFG, was set up in 2014 and saw BTM appointing the BreadTalk franchisee in Thailand to operate its namesake outlets in Thailand whilst exploring future expansion.
