Tung Lok sinks into the red with $1.8 million full-year loss amid F&B industry woes

SINGAPORE -Tung Lok Restaurants saw net profit tumble 52.1 per cent to $853,000 for its second half ended March, from $1.8 million in the year-ago period.

Revenue for the second half was down 8 per cent on the year to $43.6 million from $47.4 million a year ago, amid lower turnover from its catering business and existing outlets as well as the absence of revenue from three outlets.

However, this was partly offset by higher revenue from a new outlet that opened in the second half of financial year 2025.

For the full year, Tung Lok sank into the red with a net loss of $1.8 million, compared with a $2 million net profit previously.

It recorded a loss per share of 0.65 cent, versus 0.75 cent earnings per share previously.

Full-year revenue dropped 8.7 per cent on the year to $82.1 million, from $90 million, driven by lower contributions from its catering business, lower contributions from existing outlets and the loss of revenue contributions from five outlets.

Tung Lok warned that the food and beverage (F&B) operating landscape will remain challenging in the coming year, as persistent macroeconomic volatility continues to dampen business sentiment.

“This compounds existing industry pressures, including escalating operating costs, ongoing labour shortages and a growing shift in consumer behaviour towards price sensitivity, which are set to weigh on profit margins,” the company said in its earnings filing on May 30.

Tung Lok said it plans to streamline its operations and consolidate resources while remaining proactive in “seizing suitable expansion opportunities and innovation as they emerge”.

No dividend was declared for the financial year.

Tung Lok’s shares were unchanged at 8.5 cents as at 10.28am on June 2, after the announcement.

THE BUSINESS TIMES

With additional information from The Straits Times