Food and beverage (F&B) group BreadTalk had a spectacular first quarter as earnings soared, thanks to several business units that turned around.
Quarterly net profit ballooned 337.2 per cent to $10.7 million for the three months to March 31, compared with the same period a year earlier.
Revenue dipped 4.5 per cent to $147.6 million.
The firm had $9.3 million in net capital gain from selling its stake in commercial and retail property TripleOne Somerset in the quarter.
A special dividend of two cents a share was declared on the back of the sale, payable on July 4, representing about 60 per cent of the divestment gain.
AT A GLANCE
Q1 NET PROFIT: $10.7 million (+337.2 per cent)
Q1 REVENUE: $147.6million (-4.5%)
It noted that excluding one-off items, its core F&B business net profit was $3.1 million, a turnaround from a loss of $5.4 million a year ago.
Sales at the bakery division slid 3 per cent to $73.6 million, owing to lower contribution from the China franchise, as "the division moved ahead with its plan to eliminate underperforming franchisees".
And although revenue from the food atrium division fell 13.1 per cent to $36.3 million due to fewer outlets, Ebitda - a measure of profit before tax, interest and other items - jumped 417 per cent to $4.9 million.
BreadTalk said this was "helped by strong recovery across the entire China portfolio, the elimination of profitability drag by underperforming outlets, as well as strong performance in Singapore".
The restaurant division's revenue improved 2.3 per cent to $37.8 million, with greater contributions from three new outlets this year - at Waterway Point in Punggol, City Square Mall in Kitchener Road and The Centrepoint in Orchard.
"During the quarter, outlet count was unchanged at 32," added the firm, which converted a RamenPlay eatery at Nex mall in Serangoon into a "new concept ramen store" called So.
Quarterly earnings per share was 3.8 cents, compared with 0.87 cents in the same period a year earlier. Net asset value per share was 58.1 cents as at March 31, compared with 54 cents as at Dec 31 last year.
BreadTalk shares closed one cent higher at $1.395 yesterday, before results were announced.