While revenue eased, profit increased sharply for food retailer BreadTalk Group’s third quarter to September 30.
Known for its signature pork-floss buns, BreadTalk has three main business segments: bakery, restaurant, and food atrium.
Its revenue for the quarter fell by 2.7 per cent year-on-year to S$157.3 million (US$111.2 million), but net profit attributable to shareholders shot up 108 per cent to S$3.26 million.
Revenues declined for the bakery and food atrium segments by 0.1 and 11.4 per cent respectively while the restaurant segment grew by 2.4 per cent.
In terms of EBITDA (earnings before interest, taxes, depreciation and amortisation), the bakery segment had a 142 per cent year-on-year increase while the food atrium and restaurant segments fell by 37.9 and 2.5 per cent respectively.
BreadTalk ended the quarter with 936 outlets, 21 fewer than at the end of last year.
“The group has embarked on a consolidation path in its business, especially in China, in view of a still challenging food-and-beverage retail environment in that market,” the company says.
Its bakery division has also started reviewing its franchise portfolio with the aim of consolidating as well as positioning the franchise business for expansion.
BreadTalk says the under-performance at the food atrium division has largely come under control, with a clear turnaround plan in place. Outlet openings over the next 12 months will largely be focused on key cities where the group has a strong track record.
