BreadTalk Group's Q2 profit drops 57.9%
Total revenue for the first half rose.
BreadTalk Group’s quarterly profit more than halved despite increased revenue, the company has revealed.
In a stock-exchange filing, the company reported net profit being down by 57.9% to SG$1.02m, whilst sales rose 9.8% SG$163.3m.
Net profit for the half year was dropped 35.3% at SG$2.34m despite sales up by 7.9% to $321m.
Notably, the group’s bakery division posted a loss over the half year on a pre-tax basis. Revenue, in contrast, was up 2.8% to SG$142.8m, thanks to the consolidation of revenue from its Thailand Bakery business after acquiring the 50% interest in BTM (Thailand) Ltd from Minor Food Group.
Apart from its namesake brand of bakeries, BreadTalk’s portfolio includes Toast Box, Food Republic and The Icing Room, along with a host of franchises including Din Tai Fung, Song Fa Bak Kut Teh and Wu Pao Chun Bakery.
The group intends to continue to focus its resources in expanding, expecting its Food Atrium business to deepen its hold in China, Hong Kong, Taiwan and Cambodia. Its restaurant division is also expected to be “cautiously adding” to its presence in Singapore and Thailand whilst “managing the challenges” in the United Kingdom.
“We expect the Song Fa Bak Kut Teh business to open its first outlet in the Taiwan market in second half of the year, while we continue to fine-tune the businesses within 4orth Division to improve overall profitability. Efforts to turnaround the Bakery business, particularly in China and Thailand remain underway, while we continue to build on the strong performance of the business in Singapore,” the company said in the filing.
