SINGAPORE - Net profit fell by 34.5 per cent at Sakae Holdings in the first half of this year to June 30, falling from $2.5 million last year to $1.7 million, the company said on Wednesday (Aug 12).
Sakae, which manages the Sakae Sushi chain of restaurants, noted that rents have gone up at its outlets. Administrative and operating expenses took a large chunk out of the $33.2 million gross profit, which was 5.7 per cent lower than last year.
Revenue also declined by 2.8 per cent, from $50.3 million to $48.8 million. Sakae attributed this to strong competition in the Singapore food and beverage sector, and added that its Malaysian operations had taken a hit from the introduction of goods and services tax, the weakening ringgit, and political instability.
Earnings per share were down from 1.83 cents last year to 1.2 cents this year, while net asset value per share fell from 37.16 cents to 36.58 cents.
No dividend was declared for the six months. Last year, Sakae paid out a dividend of 0.5 cents per share.
