Breadtalk Group quarterly profit jumps 62 per cent
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Breadtalk Group has posted a 61.9 per cent jump in net profit to S$2.11 million (US$1.5 million) for its second quarter to the end of June.
This followed an 18.7 per cent rise in other income to $5.68 million and reduced interest and administrative expenses. Revenue slipped 1.5 per cent to $147.57 million.
Its higher earnings were achieved by consistent focus on evaluating and streamlining portfolios while maximising growth opportunities, says the Singapore company.
Net profit for the half-year more than tripled to $12.8 million despite a 3 per cent decline in revenue to $295.2 million.
“This places the group in a strong position to rise above the difficult retail environment,” says chairman George Quek.
He says the group remains on course to consolidate underperforming stores and expand its footprint in high-performing markets.
While outlet openings still proceed at a cautious pace, the group will continue to focus on improving overall profitability and quality of earnings.
Questions & Answers
Q.What were the main reasons for the significant increase in Breadtalk Group's net profit this quarter?
What were the main reasons for the significant increase in Breadtalk Group's net profit this quarter?
The group's net profit jump was primarily driven by an 18.7 per cent rise in other income, reaching $5.68 million, alongside reduced interest and administrative expenses. A consistent focus on portfolio streamlining also contributed to higher earnings.
Q.Did the group's revenue also increase during the second quarter?
Did the group's revenue also increase during the second quarter?
No, the group's revenue actually slipped by 1.5 per cent in the second quarter, falling to $147.57 million. Revenue for the half-year also declined by 3 per cent, reaching $295.2 million.
Q.What is Breadtalk Group's strategy for dealing with the challenging retail environment?
What is Breadtalk Group's strategy for dealing with the challenging retail environment?
The group plans to consolidate underperforming stores and expand its presence in high-performing markets, though outlet openings will proceed cautiously. The focus remains on improving overall profitability and the quality of its earnings.
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