SINGAPORE (Feb 12): F&B group Sakae Holdings reversed into a loss of $0.55 million in 2Q19 ended Dec, from earnings of $0.99 million the year before.
The negative bottomline followed a streamlining of operations by Sakae, which resulted in a 39.6% fall in revenue to $11.2 million although cost of sales and labour costs fell accordingly.
Streamlining of group operations also led to reductions in administrative expenses by 22.4% to $5.4 million. Labour costs decreased 14% to $4.3 million. Other administrative expenses including depreciation charges and other expenses also declined. Other operating expenses decreased by 3.2% to $2.7 million in 2Q19.
Gross profit margin increased 11.4 ppt to 62.5% in 2Q19 from 51.1% in 2Q18 due to effective management of operations.
In its outlook, Sakae said operating conditions remained challenging as food, labour, rental and utilities costs continue to rise in the next 12 months due to intense competition in the F&B industry, compounded by acute labour shortages.
Shares in Sakae last traded at 14 cents on Feb 8.
