SINGAPORE (May 3): Breadtalk reported 1Q earnings more than quadrupled to $10.7 million from a year ago as margins rose to 7.2% from 1.6% on lower expenses and costs.
Group revenue fell 4.5% to $147.6 million.
Sales from the Bakery Division declined 3% to $73.6 million. The decline was primarily due to lower China franchise revenue contribution as the division moved ahead with its plan to eliminate underperforming franchisees. EBITDA margin normalised slightly from 8.9% to 8.0%, with EBITDA for the quarter at $5.9 million.
While revenue for the Food Atrium Division declined 13.1%to $36.3 million on lower outlet count, EBITDA recovered 417% to $4.9 million, helped by strong recovery across the entire China portfolio.
Restaurant Division revenue improved 2.3% to $37.8 million, with incremental revenue contribution from three new outlets this year – Punggol Waterway Point, City Square Mall and Centrepoint. EBITDA improved 13.9% to $7.4 million.
Group cost of sales narrowed 9.3% to $66.7 million while distribution and selling expenses narrowed 7.9% to $59.8 million and administrative expenses narrowed 10.9% to $20.8 million.
1Q17 also saw the recognition of $9.3 million in net capital gain from the divestment of the group’s investment in TripleOne Somerset, while 1Q16 saw the recognition of $8.8 million in net capital gain from the divestment of 112 Katong Mall.
It declared a special dividend per share of 2 cents, which it said was about 60% of its divestment gain from selling TripleOne Somerset. That was higher compared with a special dividend of 1.35 cents in the previous year.
Shares of Breadtalk closed 1 cent higher at $1.40.
