BreadTalk Group reports flat Q2 earnings due to restructuring of Carl Junior's business

Customers at one of the BreadTalk outlet in Singapore, which served a selection of pastries. BreadTalk Group has reported flat second quarter net earnings of $3 million even as revenue grew at a fast clip of 20.7 per cent to $126.5 million. -- NP FIL
Customers at one of the BreadTalk outlet in Singapore, which served a selection of pastries. BreadTalk Group has reported flat second quarter net earnings of $3 million even as revenue grew at a fast clip of 20.7 per cent to $126.5 million. -- NP FILE PHOTO: KELVIN CHNG

BreadTalk Group has reported flat second quarter net earnings of $3 million even as revenue grew at a fast clip of 20.7 per cent to $126.5 million.

For the half year ended June 30, net profit rose by 5.2 per cent to $4.7 million while revenue increased by 17 per cent to $246.8 million.

The bottom-line included an impairment loss on property plant and equipment of $1 million arising from the closure of three non-performing Carl's Junior stores in Shanghai.

Excluding this impact, net profit would have improved by 27.6 per cent to $5.6 million.

Bakery division revenue and bottom-line improved by 14.4 per cent and 36 per cent respectively, mainly due to higher gross profit margin achieved.

Revenue grew across all markets while the improvement in bottom-line from Singapore, China and Thailand helped to defray lower earnings in other markets.

Quarterly earnings per share inched up to 1.08 cents from 1.07 cents previously while net asset value per share grew to 30.6 cents compared to 29.4 cents as at Dec 31.

Notwithstanding a slower pace of economic growth, BreadTalk believes this may not necessarily lead to a drastic curb on consumers' lifestyle and entertainment activities.

"Our concept-driven F&B businesses, in particular, would continue to appeal to consumers," it said.

It continues to see China as its core overseas market, and are is committed to expansion plans for its bakeries, food courts and restaurants.

An unchanged interim dividend of half a cent was declared.