Food and beverage company RE&S has reported earnings of $9.5 million for the FY2021 ended June 30, reversing from a loss of $5.4 million in the preceding year.
Revenue in the same period was up 12% to $124 million, as the company generated more online sales.
It plans to pay a final dividend of 0.85 cents, which, coming on top of the interim dividend of 0.85 cents, will bring the full year payout to 1.7 cents and a payout ratio of 60%.
The company plans to maintain this payout ratio going forward.
While the company is noted for its full-service Japanese restaurants, the growth driver for this FY2021 was from its so-called quick-service restaurants.
This segment accounted for 40% of RE&S’ total revenue for FY2021, up from 22.6% in FY2016.
“We have put in efforts in adapting to the changing landscape and to grow through the expansion of our Quick Service Restaurant segment,” says CEO Fenton Foo (seen here in a 2012 picture).
“We will continue to look for new business opportunities and improve profitability while staying vigilant and nimble to thrive in this challenging operating environment,” he adds.
The company notes that with higher vaccination rates, the F&B market can expect to “normalize gradually”, although it also warns that the pandemic situation remains fluid and changes might happen.
Also, the pandemic has changed consumption patterns as consumers want “greater value and convenience”, along with demand for delivery.
RE&S plans to expand its quick service restaurants segment by adding new concepts of opening more outlets of existing brands. It is also developing more ready meals suitable for delivery orders.
“Barring unforeseen circumstances, the group is cautiously optimistic of achieving satisfactory financial performance for FY2022.”
RE&S last traded at 15 cents. It is up 68.9% year to date.
