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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.