Lower spending at restaurants drags Thai Village's earnings down by 21%

Thai Village Holdings, famed for its shark's fin soup, has posted a 21 per cent drop in net profit to $1.3 million.

Revenue for the 12 months to Sept 30 fell by 16 per cent to $21.7 million.

This was mainly due to a drop in upmarket food and beverage (F&B) spending in China and the sale of an outlet in Shanghai, the mainboard-listed company said in a statement.

The Chinese government has reined in extravagant banquets over the past year as part of an austerity drive that also served to weed out corruption.

Cost of raw materials decreased by 19 per cent to $7.3 million as a result of lower revenue and better management of costs.

Personnel costs dropped by 11 per cent to $7.9 million, mainly due to lower directors' remuneration and fewer workers employed.

Earnings per share eased to 0.63 cent from 0.79 cent previously while net asset value per share fell by 0.11 cent to 8.9 cents.

Looking ahead, Thai Village said the F&B industry is expected to remain competitive and challenging. It will continue to explore chances to expand its operations while keeping a lid on costs.