BreadTalk Group profits crashed 34.7% to $7m in Q3

Expenses from their first Din Tai Fung outlet in London dragged it down.

BreadTalk Group experiences YoY post-tax profit loss of 34.7% to S$7m from $6m in 2017 in the third quarter ended September 30.

“The lower YoY profit during the third quarter was caused by one-off expenses in the run up to the opening of our Din Tai Fung business in London and other new businesses, as well as certain underperforming segments of our Bakery business which we are already in the process of restructuring,” BreadTalk Group CEO Henry Chu said in a statement.

Their revenues went up by 2.3% to $158m from $154m. EBITDA also rose 0.6% to $20m.

BreadTalk’s bakery segment contributed the most to the quarterly earnings growth at SG$73.0 million despite having slowed down from $77m YoY.. The Food Atrium business comes in second with $41m, followed by the Restaurant segment with S$39m.

“Nonetheless, the revenue growth momentum during the quarter was strong at 2.3% Y/Y. This bears testament to our long term strategies of ‘Consolidate Current, Grow New’, which will bear fruit in time to come,” added Chu.