SINGAPORE (Feb 22): Breadtalk Group reported FY16 earnings of $11.4 million, up 50.4% from $7.6 million a year ago on a steeper drop in cost of sales and 3.3% higher other income of $8.9 million.
In the 4Q16, earnings came in at $4.4 million, four times the group’s earnings of $1.1 million in 4Q15.
The group’s y-o-y improvement in FY16 earnings comes despite a 1.5% decline in revenue for the full year to $615 million from $624.1 million a year ago.
In FY16, revenue from the group’s bakery division fell 0.7% to $305.9 million, primarily due to weakness in the China franchise business, which is mitigated by strong performance of direct operated stores in Singapore as well as BreadTalk’s international franchise business.
Food Atrium fell 8.2% to $158.9 million as same store sales declined across the group’s China outlets during the year.
The lower revenue from the bakery division and Food Atrium was largely offset by a 4.9% on-year revenue growth in the restaurant division to $150.2 million due to continued store sales growth momentum, recovery at Ramen Play, and higher contribution from Din Tai Fung Thailand.
BreadTalk has recommended a final dividend of 2 cents per share for FY16, which will be paid to shareholders on Jun 15.
Looking ahead, the group says its consolidation strategy comprises streamlining its operations, improving supply chain relationships and managing costs. The group adds that it remains optimistic to pilot through the testing food & beverage (F&B) retail landscape of 2017.
Shares of BreadTalk closed 0.8% higher at $1.32.
