SINGAPORE - No Signboard Holdings, best known for its chain of No Signboard Seafood restaurants, said on Monday (Aug 13) that net profit fell 79.1 per cent in its fiscal third quarter as higher costs and expenses exacerbated a decline in revenue.
Profit attributable to shareholders was $761,142, or 0.16 cent per share, in the three months ended June 30, down from $3.6 million, or 0.79 cent per share, a year ago. For the nine-month period, net profit decreased 57 per cent to $2.7 million, or 0.58 cent per share.
No Signboard will pay an interim cash dividend of 0.26 cent per share. Its stock closed at 17.2 cents on Friday.
Revenue slipped 4 per cent to $6.8 million during the quarter as restaurant sales fell 29.1 per cent due to sales promotional activities that led to a drop in average spending per customer.
The new beer business contributed $2.5 million of revenue during the period. The absence of a year-ago one-time recognition of other income from the termination of a distribution agreement by the beer business led other income to drop 90.2 per cent to $0.1 million.
Pre-tax profit fell 79.7 per cent to $901,393 after significant increases in costs and expenses. Raw materials and consumables costs rose to $2.4 milion from a year-ago $1.7 million due to costs related to the beer business. Employee benefits expense grew 64.1 per cent to $1.8 million as the company included a five-month contribution from the beer business and increased headcount related to its November 2017 listing. Other operating expenses more than tripled to $0.9 million due to the inclusion of the beer business.
Looking ahead, No Singboard said it will continue to work on new casual dining concept restaurants as it works to turn around and expand the beer business.