Channel NewsAsia

BreadTalk Group reports 14% drop in Q2 net profit

BreadTalk attributed the dip to the closure of non-performing outlets, which led to an asset write-off amounting to S$2.2 million in the first half of this year.

SINGAPORE: Homegrown bakery BreadTalk Group on Monday (Aug 11) announced a 14 per cent decline in second-quarter net profit to S$2.62 million compared to a year ago. The lower earnings came despite a 10.5 per cent rise in group revenue for the same quarter to S$139.9 million compared to last year.

BreadTalk attributed the dip to the closure of non-performing outlets, which led to an asset write-off amounting to S$2.2 million in the first half of this year.

Net profit for the first six months of this year fell 4.9 per cent to S$4.4 million from a year ago while group revenue rose 13.6 per cent to S$280.3 million.

Going forward, BreadTalk said it will focus on "consolidating its Ramen Play business which may involve further closure of non-performing outlets" in the second half of the year. The company added that "it will push on its cost rationalisation plan to achieve better efficiency in the back-end support as well as improving the quality of service and offering at the frontline".

BreadTalk has proposed an interim dividend of 0.5 cents per share.  

Tweet photos, videos and updates on this story to  @channelnewsasia