SINGAPORE (May 15): Sakae Holdings reported 1Q losses narrowed 34% to $1.3 million from $2.1 million a year ago.
Revenue fell 22.4% to $17.3 million from $22.3 million following the rationalisation of non-performing outlets, the effect of sluggish economic conditions leading to weaker market sentiments, fierce competition in the F&B sector in the Singapore market, as a result of low entry barrier in Singapore.
Sakae says it will continue its efforts to work on introducing new products offerings, and connecting closely with customers through social media and other various marketing platforms.
Cost of sales level as a percentage of sales and gross profit margin were at 32.3% and 67.7% respectively in 1Q17 as compared to that of 31.9% and 68.1% respectively in 1Q16.
Administrative expenses, which included labour costs, dropped 19.6% to $8.8 million which was in line with the rationalisation of non-performing outlets.
The group also incurred non-operating expenses of $0.3 million in 1Q17, which consisted primarily of legal fees incurred in relation to its associate, Griffin Real Estate Invesment Holdings (GREIH) and Gryphon Capital Management (GCM).
Shares of Sakae closed at 31 cents.
