SINGAPORE (Feb 22): BreadTalk announced FY17 earnings of $21.8 million, almost double the $11.4 million recorded in FY16.
The stronger botttomline came on the back of lower cost of sales and losses from associates as well as higher other income and interest income.
For FY17, group revenue dropped 2.5% to $599.7 million from $615.0 million a year ago, in line with its consolidation strategy for FY17.
Bakery Division revenue declined 3.2% y-o-y to $297.2 million during FY17 due to lower revenue from direct operated stores at Shanghai, Beijing and Hong Kong, as well as lower franchise revenue from China due to the planned early termination of eight franchisees during the year.
Food Atrium Division revenue was 5.4% y-o-y lower at $149.3 million as number of outlets decreased by four.
Restaurant Division revenue rose 2.2% y-o-y to $140.7 million with the addition of one new outlet during the year in Thailand.
4orth Division is a new business division incorporated with the objective of incubating new F&B business concepts, as well as enter into joint ventures or other forms of collaboration with good potential F&B partners, with whom the group would take these F&B businesses to the regional level. This division ended the year with revenue of $7.9 million.
Cost of sales also dropped 4.0% to $599.7 million, which then brought gross profit to $333.3 million, 1.2% lower than $337.5 million in the previous year.
Other income increased by 12.3% to $33.2 million from $29.5 million last year.
Interest income jumped 92.3% to $2.23 million from $1.16 million a year ago.
Losses from share of results of associated narrowed by 54.9% to $0.88 million, compared to a loss of $1.96 million in the previous year.
The group has declared a tax exempt (one-tier) special dividend of 1 cent per share and final dividend of 2 cents per share for FY17, which will be payable on May 15.
George Quek, chairman of BreadTalk says, “Looking into the future, we are well positioned to soar above the challenging retail market conditions to deliver high quality products and earnings for our customers and shareholders respectively.”
Shares in BreadTalk last traded at $1.70 on Wednesday.
