BreadTalk profits up 22.2% to $3.98m in Q3

It recognised revenue from the sale of two property investments.

BreadTalk delivered excellent results in Q3 as profits went up 22.2% YoY from $3.26m to $3.98m.

According to its financial statement, revenue fell 2% YoY from $157.34m to $154.26m, whilst revenue for the nine months of 2017 fell 2.6% YoY from $461.7m to $449.5m.

About $9.3m was recognised in Q1 from the sale of BreadTalk's investment in TripleOne Somerset. About $8.8m was also recognised in Q1 last year from the sale of 112 Katong Mall.

The bakery division's revenue declined 2.7% YoY to $223.1m, due to lower revenue from direct operated stores in Shanghai and Beijing.

The number of direct operated stores remained relatively unchanged at 255 whilst franchise outlets increased to 604.

Here's more from BreadTalk:

ML Breadworks Sdn Bhd was sold to a joint venture company (JV Co). Upon the completion of the deal, the Group, via its wholly-owned subsidiary, BreadTalk International Pte Ltd would hold 25% share in the JV Co, with the JV partner being a subsidiary of United Malayan Land Bhd (UMLand) – one of the top 10 developers in Malaysia.

The Group recognised a gain on disposal of $0.3m and will transit from consolidation to equity accounting for this business commencing Q4 FY2017.

For Food Atrium Division, revenue declined 6.9% YoY to $112.4m as number of outlets decreased by 3 YoY. The same store sales recovery momentum in our China food atrium portfolio has sustained. EBITDA improved 127.0% YoY to $17.7m with EBITDA margin improving from 6.4% to 15.7%.

Restaurant Division revenue rose 2.5% YoY to $104.8m. There was no change in the number of outlets during the period. EBITDA rose 7.0% YoY to $22.3m on the back of better cost management, with EBITDA margin at 21.2% (9M FY2016: 20.4%).