SINGAPORE (Aug 10): Restaurant chain operator Soup Restaurant has announced $0.3 million in earnings for 2Q17, reversing from its loss of $0.2 million in the same period a year ago due to higher revenue.
Group revenue grew 16% to $10.1 million over the quarter from $8.7 million in 2Q16, mainly attributable to revenue contribution from new outlets, which were offset in part in lower revenue from existing outlets as well as the closure of outlets.
For the six months ended June, the group reported a 29.4% increase in earnings to $0.7 million compared to $0.5 million a year ago, with revenue up 7.7% to $20.6 million from $19.1 million in 1H16.
Cash and cash equivalents as at end-June, however, stood lower at $10.7 million from $11.3 million a year ago, attributable mainly to payments made for purchases of plant and equipment as well as payment of final dividend for the previous financial year.
In its outlook, Soup Restaurant says it will continue to focus on strengthening its brands with an intention to increase product offerings, while looking for prime locations within Singapore and overseas for expansion and taking the opportunity to consolidate and streamline processes to achieve economies of scale.
The group says it has increased its central processing resources to increase its distribution capacity, tightened costs control and improved its productivity.
“The food processing and distribution business remains focused on its core strategies to assist the group through procurement sourcing and management, as well as widening its distribution networks for its fast-moving consumer goods and ready meals,” it adds.
Shares in Soup Restaurant closed flat at 18 cents on Thursday.
