BreadTalk Q2 net profit sinks 54.8% as bakery, food atrium sales flag

BreadTalk Group's International Headquarters in Paya Lebar iPark at Tai Seng Street.
BreadTalk Group's International Headquarters in Paya Lebar iPark at Tai Seng Street.PHOTO: ST FILE

SINGAPORE - Second quarter net profit at food and beverage group BreadTalk plunged 54.8 per cent to S$1.3 million, even as sales dipped 3.3 per cent to S$149.8 million.

This came on the back of declines in bakery division as well as food atrium revenue.

Bakery division revenue decreased 2 per cent in the six months to June 30 to reach S$150.7 million, primarily attributed to weaker franchise revenue from the China franchise business, mitigated by stronger performance of the company's direct operated stores and international franchise business.

Food atrium revenue declined 5.0 per cent over the same period to S$80.2 million, due to weaker traffic in some shopping malls in China as well as start-up expenses of new outlets, write-offs attributed to outlet closures as well as higher operating expenses.

Earnings per share for the quarter was 0.46 cent, from 1.02 Singapore cents in the same period a year ago. Net asset value per share was 52.4 cents as at June 30 compared with 52 cents as at Dec 31 last year.