Sakae Holdings, owner of the Sakae Sushi restaurant chain, has posted a first-quarter net loss of $2.1 million, reversing a net profit of $638,000 a year earlier.
Revenue in the three months ended June 30 was $21.3 million, a 12.7 per cent fall from a year earlier, due to weaker market sentiment and fierce competition in Singapore's food and beverage market.
Although Sakae saw a slight revenue increase from the China market, this was offset by lower contributions from Malaysia.
The ringgit's weakening against the Singdollar in the last quarter compared with a year ago resulted in a lower contribution from Malaysia, although revenue from Malaysia had in fact risen in local-currency terms, the group said. It did not give a further revenue breakdown.
Other operating income sank 17.9 per cent from a year ago to $928,000 as Sakae got fewer government grants. But second-quarter administrative expenses fell 6 per cent to $9.8 million on lower labour costs and depreciation charges, and other operating expenses shrank 3.5 per cent to $6.1 million.
AT A GLANCE
REVENUE $21.3 million (-12.7%)
NET LOSS $2.1 million (n.m.)
Sakae reported negative operating cash flows of $3.7 million in the second quarter, of which $900,000 was for the payment of legal fees in relation to its associate, Griffin Real Estate Investment Holdings.
The company earlier said it had filed a suit against various defendants who allegedly conducted the affairs of Griffin "in a manner that is oppressive and prejudicial" to the interests of Sakae, which is a minority shareholder of Griffin.
Sakae said it will continue to find partners to help grow the business. This has resulted in an increase in other investments and advances made to suppliers, the group added.
Quarterly loss per share was 1.49 cents, down from earnings per share of 0.45 cent in the same period a year ago. Net asset value per share was 29.42 cents as at June 30, down from 32.23 cents as at Dec 31.
The results were posted after the market closed. The counter closed unchanged at 36.5 cents with no shares traded.