Auric Pacific back in the black with FY16 earnings of $7.2 mil

This resulted in higher operating profit for the year from its wholesale and distribution unit; lower operating losses from Edmontor; and a turnaround in Food Junction’s performance from improved contributions from its food courts and self-operated stalls in Singapore, in addition to the rationalisation of operating costs including the closure of non-performing restaurants in 2015 and 2016.

For the fourth quarter ended Dec 31, the group registered losses of $0.3 million, a 98.5% improvement from the $19.1 million loss declared in the same quarter a year ago on lower costs.

Revenue for the quarter fell 1.4% to $106.4 million from $108 million in 4Q15, mainly due to the loss of revenue resulting from the closer of non-performing outlets and the restaurant business from the food retail division – where the group’s Edmontor and Food Junction both registered a decline in revenue by 8.9% and 17.5% respectively.

Food Junction’s performance for the fourth quarter also included an impairment charge of $2 million for part of the intangible assets, following “a shift in strategic focus by the business”, says the group.

The lower revenue was however partially offset by a growth in revenue from the food division.

In its outlook, the group says that although it has achieved a “stronger landing” in FY16, it will continue to focus building a stronger foundation for its core business, as well as seek new avenues and opportunities for business growth, in view of the challenges and certainties in the year ahead.

Auric Pacific last month received a voluntary conditional cash offer from Silver Creek Capital, an investment vehicle jointly owned by its largest shareholder, Stephen Riady and his son-in-low Andy Adhiwana, at an offer price of $1.65 in cash per share.

Riady is the executive chairman of real estate developer OUE.

Shares of Auric Pacific closed flat at $1.65 on Monday.