BreadTalk's Q4 net profit soars 41.5% to $5.9 million amid labour crunch challenges

BreadTalk's earnings for the three months to Dec 31 jumped 41.5 per cent to $5.9 million, while revenue climbed 22.8 per cent to $147.1 million up from a year earlier. -- ST FILE PHOTO: NEO XIAOBIN
BreadTalk's earnings for the three months to Dec 31 jumped 41.5 per cent to $5.9 million, while revenue climbed 22.8 per cent to $147.1 million up from a year earlier. -- ST FILE PHOTO: NEO XIAOBIN

BreadTalk's earnings for the three months to Dec 31 jumped 41.5 per cent to $5.9 million, while revenue climbed 22.8 per cent to $147.1 million up from a year earlier.

The bakery chain's full-year net profit did just as well, growing by 39.9 per cent to $14.9 million as turnover rose 19.9 per cent to $536.5 million.

BreadTalk's topline was boosted by better performances across its bakery, food atrium and restaurant divisions, said the company on Tuesday. Restaurant chains such as Din Tai Fung and Ramen Play fall under the firm's charge.

Full-year earnings per share stood at 4.83 cents, up from 4.27 cents a year earlier, while net asset value per share was 33.4 cents as of Dec 31 last year, up from 29.4 cents.

The company said it will continue its expansion plan in China while reinforcing its position in the Singapore market. It also hopes to strengthen its operations in Taiwan and Thailand and will "closely monitor the unrest in central Bangkok".

BreadTalk said it does not expect the anti-government protests in Bangkok to have a significant impact on its revenue.

Like many firms here, it acknowledged the ongoing labour crunch as a challenge for the group. It seeks to overcome this through compensation schemes, workflow re-engineering and deployment of technology.

A final cash dividend of 1.3 cents a share was proposed, bringing the year's total payout to 1.8 cents.

BreadTalk shares closed down one cent, or 1.04 per cent, at 95.5 cents.

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