SINGAPORE - LIfestyle food and beverage group BreadTalk Group reported on Thursday (Feb 22) record earnings of S$21.8 million for the full year ended Dec 31.
This marked a 91 per cent jump from S$11.4 million previously.
Earnings per share came in at 7.76 Singapore cents, well up on the 4.07 Singapore cents previously.
The better performance was thanks to the group's strategy of consolidation and maximisation, which helped the core divisions focus on improving existing outlet portfolio mix despite the unpredictable macro retail environment, BreadTalk told the Singapore Exchange before market opened.
BreadTalk has recommended a dividend of seven Singapore cents for the full year, 81.8 per cent higher than the 3.85 Singapore cents paid out in 2016.
This comprises a special dividend of one Singapore cent per share and a final dividend of two Singapore cents per share.
Revenue for the full year dipped 2.5 per cent to S$599.7 million in line with the group's consolidation strategy for 2017.
Turnover in the bakery division fell 3.2 per cent to $297.2 million on lower revenue from direct operated stores at Shanghai, Beijing and Hong Kong, as well as lower franchise revenue from China due to the planned early termination of eight franchisees.
Contribution from the food atrium division dropped 5.4 per cent to S$149.3 million, while the restaurant division rose 2.2 per cent to S$140.7 million.
Net profit for the three months ended Dec 31 rose 14.4 per cent to S$5.1 million, while revenue eased 2 per cent to S$150.3 million.
During the year, S$9.3 million in net capital gain was recognised from the divestment of the group's investment in TripleOne Somerset in the first quarter, compared with an S$8.8 million net capital gain from the divestment of 112 Katong Mall in the first quarter of 2016.
Excluding one-off items, core food and beverage (F&B) business net profit would have rocketed 153.3 per cent to $17.7 million.
BreadTalk said that its bakery business invested significant efforts to consolidate and turn around some underperforming direct operated stores in China and Singapore last year.
While it expects to open its first Din Tai Fung outlet in London in the fourth quarter of this year, the group is also focused on deepening its reach in existing Singapore and Thailand markets to further optimise economies of scale.
Two new outlets have already been opened as at January 2018 - at the newly-opened Northpoint City in Singapore and at Thonglor in Bangkok, Thailand.
Shares of BreadTalk closed 1.2 per cent or two Singapore cents higher at S$1.70 on Wednesday.