BreadTalk's 2017 profits jumped 91% to $21.85m

If it weren’t for gains from TripleOne Somerset, earnings would have been pulled down by a weak bakery division.

BreadTalk delivers fresh full-year earnings which surged 91% YoY from $11.44m to $21.85m, whilst its Q4 earnings jumped 14.4% YoY from $4.43m to $5.07m.

According to its financial statement, $9.3m in net capital gain was recognised due to the divestment of the group’s investment in TripleOne Somerset during Q1 in 2017. In 2016, $8.8m in net capital gain was recognised due to the divestment of 112 Katong Mall during Q1 in 2016.

Excluding one-off items, core Food & Beverage (F&B) business net profit for 2017 would have been $17.7m, an improvement of 153.3% from a net profit of $7m in 2016.

However, group revenue dipped 2.5% YoY from $615m to $599.7m. The revenue of Breadtalk’s Bakery Division declined 3.2% YoY to $297.2m, no thanks to lower revenue from directly operated stores at Shanghai, Beijing, and Hong Kong, as well as lower franchise revenue from China due to the planned early termination of eight franchisees during the year.

Food Atrium Division revenue was 5.4% YoY lower at $149.3m as the number of outlets decreased by four. The same store sales growth momentum for the entire portfolio of food atrium outlets was strong, especially in China.

Restaurant Division revenue rose 2.2% YoY to $140.7m with the addition of one new outlet during the year in Thailand. In tandem, EBITDA rose by 2.1% YoY to $30.1m.

Earnings per share (EPS) on a fully diluted basis for 2017 was 7.75 cents compared to 4.06 cents for 2016.