SINGAPORE (Feb 15): Sakae Holdings concluded FY17 with $1.1 million in earnings, reversing from its losses of $12.6 million in FY16 on reduced expenses.
For the 4Q ended Dec 2017, the group reported earnings of $0.1 million compared to the $5.3 million loss posted in 4Q16, boosted by a new stream of revenue from commodities trading of $3 million.
In all, revenue for the full year fell 20.3% to $68.9 million from $86.4 million a year ago.
Sakae attributes the full year revenue decline the effects of sluggish economic conditions which led to weaker market sentiments globally, while adding that the rationalisation of non-performing outlets in the Singapore market has also contributed to the fall in group revenue.
Administrative expenses fell 31.6% to $4 million from $5.9 million in FY16 in accordance with the streamlining of the group’s operations.
Meanwhile, other operating expenses nearly halved to $15.3 million in FY17 from $29.5 million previously as the group continued to carry out its rationalisation exercise on non-performing outlets.
This was further supported by a reduction in rental, utilities and other expenses as a result of the rationalisation exercise, which also contributed to the reduced operating expenses.
Looking ahead, Sakae says it will continue to manage the challenging operating conditions in the F&B industry amid rising labour costs, acute labour shortages, high rental costs and intense competition.
Shares in Sakae closed flat at 21 cents on Wednesday.
