RE&S Holdings' profit plunges by 21.3% to $1.1m

More intense competition in the F&B sector hurt the income.

RE&S Holdings Limited’s net profit for the second quarter ended last 31 December (2Q 2018) went down by 21.3% to $1.1m.

“The challenges in the food and beverage industry are expected to persist, given intensifying competition and higher cost pressures posed by a tighter labour and rental market. Nonetheless, the Group remains committed in expanding its businesses both organically and through strategic acquisitions, joint ventures or alliances while seeking to streamline operations and cut costs,” said RE&S in its filling to the Singapore Exchange.

Excluding the one-off IPO expenses of approximately $1.0m, the company recorded a $2.1m net profit after tax in 2Q 2018, which is 51.5% higher year-on-year.

Meanwhile, the group’s revenue increased by 2.9% to almost $37m in 2Q 2018. RE&S did not declare any dividend for 2Q 2018.

This is the company’s first financial results release since its listing on the Catalist board in November 2017.