SINGAPORE (May 14): Sakae Holdings reversed out of the red with earnings of $0.3 million for the 1Q ended March on the back of lower expenses, compared to losses of $1.3 million a year ago.
1Q18 revenue fell 28.5% to $12.3 million, from $17.3 million a year ago.
This was mainly due to a continuing rationalisation exercise on non-performing outlets in Singapore, coupled with streamlining of group operations, which resulted in lower revenue.
Administrative expenses were 33.5% lower at $5.8 million in 1Q18, from $8.8 million a year ago, as a result of the rationalisation and streamlining of group operations.
Other operating expenses fell 40.2% to $3.2 million during the quarter, from $5.4 million a year ago, as a result of the rationalisation exercise.
As at end March, cash and cash equivalents stood at $6.5 million.
Looking ahead, the group expects operating conditions to be challenging as food, labour, rental and utilities costs continue to rise in the foreseeable next 12 months.
It adds that it continues to work hard to manage the challenging operating conditions in the Food & Beverage industry.
Shares of Sakae last closed at 18.8 cents on May 7.
