Thailand acquisition boosts BreadTalk sales
Singapore’s BreadTalk Group has reported a year-on-year revenue increase of 6.1 per cent to S$157.6 million (US$115.56 million) for its first financial quarter this year.
The group’s net profit increased by 11.5 per cent to $1.3 million over the period.
Sales at BreadTalk’s bakery division rose 2.3 per cent to $72 million ($52.8 million) during the first quarter with the consolidation of revenue from its Thailand bakery business, following the acquisition of the 50 per cent interest in BTM from Minor Food Group. Excluding that, revenue would have been lower by 5.7 per cent year on year, due to lower revenue from the directly operated stores in Beijing and the franchise business in China, partly offset by stronger revenue by the directly operated Singapore stores.
The consolidation of the Thailand business added 47 BreadTalk outlets to the group’s direct operated store count.
“Last year was a year of milestones for us,” said group CEO Henry Chu. “We expanded into new markets such as London with Din Tai Fung and brought our joint-venture partners Song Fa Holdings and Wu Pao Chun Food into strategic markets such as China and Singapore respectively.“With the new partnerships, we laid the foundations to diversify our business portfolio so as to achieve sustainable growth for the group. In addition, we embarked on efforts to increase our central kitchen production facilities in China and Thailand. The 6.1 per cent increase in group revenue show that these efforts are starting to pay off,” he said.
“Looking forward, we will continue to strengthen our presence of existing brands in key markets. We will continue to develop in talent development and the setup of our third regional office in Bangkok as we position ourselves for growth in Thailand and greater Mekong-region markets.”