SINGAPORE (May 8): Soup Restaurant Group reported first quarter earnings more than doubled to $0.76 million, or 0.27 cent per share, from $0.36 million a year ago.
Revenue for the 1Q18 months ended March rose 5% to $11.1 million from $10.5 million due to an increase in revenue from existing outlets of $0.9 million and online delivery services of $0.5 million, offset by a decrease in revenue from the closure of outlets of $1.1 million.
Revenue for the food processing, distribution and procurement services segment has also increased by $0.2 million.
Other income decreased by 11.5% mainly related to a decrease in government grants received for the Wage Credit Scheme and Special Employment Credit.
Purchases and other consumables were maintained at 22.0% of revenue in 1Q18 compared to 1Q17. Employee benefits expense decreased by $0.1 million or 1.3% in 1Q18 mainly due to the closure of outlets.
Other expenses decreased marginally by 0.8% in 1Q18. The increase in sales commission, which is associated with online delivery services, was offset against a decrease in operating lease expenses as a result of the closure of outlets.
As a result, the group’s profit before income tax doubled to $0.9 million from 1Q17.
Soup Restaurant says it will continue to focus on strengthening our brands with plans for a cautious expansion of our portfolio of outlets in Singapore. The group will also strive to bring its food offerings to more customers through online delivery platforms from all its outlets. At the same time, the group will continue to increase productivity at its restaurants to better serve its customers.
Shares in Soup Restaurant closed at 16 cents on Tuesday.
