Sakae Sushi owner sinks into red with $317,000 Q3 loss

Sakae Sushi's outlet in Junction 8, which closed in March. Sakae's third-quarter revenue fell by 19.3 per cent. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Sakae Holdings, best known for its Sakae Sushi restaurant chain, sank into the red in the third quarter on a decline in other operating income and gains, as well as the cost of operating expenses.

Sakae reported a net loss of $317,000 for the three months to March 31, 2022, against a net profit of $219,000 in the same period a year ago, as revenue fell by 19.3 per cent to $4.6 million.

That comes even as it managed to maintain its gross profit margin despite rising costs and lower revenue during the pandemic, Sakae said in unaudited financial statements on Sunday (May 15).

The group noted that its topline impact was cushioned by a pivot to online orders and delivery services - but that was at the cost of revenue from physical stores which was reduced.

With Sakae receiving lower rental rebates than in the previous year, other operating income decreased, while other operating expenses rose on the reversal of an earlier impairment loss.

For the nine months to March, Sakae chalked up a net loss of $283,000 - against a net profit of $836,000 previously - on a 22.6 per cent drop in revenue to $13.1 million.

Loss per share was 0.23 cent for the three months, compared with earnings per share of 0.16 cent before. It was 0.2 cent for the nine months, compared with earnings per share of 0.6 cent before.

Net asset value stood at 39.01 cents a share, against 40.45 cents as at June 30, 2021.

Sakae, which counts Singapore and Malaysia as its key markets, warned in its outlook statement that it expects the operating environment of the food and beverage industry to remain challenging in the next 12 months, even as Covid-19 restrictions are relaxed.

No dividend was recommended, unchanged from the year before, which the board said was to conserve liquidity to fulfil the operational and financial requirements of the group amid the uncertainties caused by the Covid-19 pandemic.

Sakae shares last traded at 10.8 cents, down by 0.1 cent, or 0.92 per cent, before the results.

Join ST's Telegram channel and get the latest breaking news delivered to you.