SINGAPORE - Sakae Holdings' earnings for the first quarter fell 63.6 per cent year-on-year to $75,000 from $206,000 as streamlined operations led to lower revenue, the operator of conveyor belt sushi restaurants said on Wednesday (Nov 14).

This translated to earnings per share (EPS) of 0.05 cent for the three months ended September, a third of the EPS of 0.15 cent for the corresponding period a year ago.

Revenue was 36.6 per cent lower at $10.4 million, compared to $16.4 million a year ago.

The group had negative operating cash flow of $1.3 million in the first quarter and it said it would be cautious in ensuring continuous growth in operations and in managing its operating costs effectively.

On its sugar trade business that turned sour, Sakae repeated its statement that investigations are still on-going and it will provide updates as and when it is appropriate to do so. The company announced in September 2018 that its auditors had questioned the validity of certain commodity trade transactions. Sakae has since filed a police report.

Due to intense competition in the food and beverage (F&B) industry, in addition to acute labour shortages, the group expects operating conditions to be challenging as food, labour, rental and utilities costs are likely to continue to rise in the next 12 months.

The counter was last traded on Nov 2 at 15 cents.