Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

BreadTalk net profit up 82.5% for Q4; Group takes over of its Thailand operations with 160-million-baht buyout

Earnings per share for the quarter was at 1.58 Singapore cents, compared with 0.86 Singapore cent a year ago.

Food and beverage firm BreadTalk Group posted a net profit of S$8.9 million for the fourth quarter, an 82.5% gain compared to a restated net profit of S$4.9 million a year ago, as higher other income and lower distribution and selling expenses offset the rise in administrative costs.

Revenue rose by 3.1% to S$154.8 million for the fourth quarter. For the full financial year, revenue was up by 1.7% to S$609.8 million.

Earnings per share (EPS) for the quarter was at 1.58 Singapore cents, compared with 0.86 Singapore cent a year ago. For the full-year, EPS was at 2.70 Singapore cents, compared with the 3.85 Singapore cents in the previous year.

The group has declared a total dividend of 8.4 Singapore cents for the year. The dividend for the previous year was at 19.6 Singapore cents.

2018 sales driven by restaurant, Food Atrium, and 4orth food concepts

For the full-year of 2018, the group said it had remained focused on its strategy of growing its portfolio of brands while consolidating existing brands’ performance in key markets.

BreadTalk said sales for the full-year was driven by growth from the Food Atrium and restaurant divisions as well as contributions from the 4orth Division, a segment that comprises five Sō Ramen, one TaiGai and one Nayuki outlets in Singapore, four Song Fa Bak Kut Teh and one Wu Pao Chun Bakery outlets in China.

For the full-year, net profit sank 29.9% to S$15.2 million, due to the absence of capital gains from the divestment of the group's investment in TripleOne Somerset in the financial year of 2017. The group’s joint ventures and associates also reported weaker results for the financial year of 2018, BreadTalk said.

Revenue in the group’s bakery division fell by 5.1% to S$282 million for the financial year of 2018, due to lower sales from direct operated stores in Shanghai, Beijing and Hong Kong, as well as lower franchise revenue from China.

An aggressive stance for 2019 with all hands on deck

BreadTalk said it is mindful of the headwinds faced in its bakery business.

‘Starting financial year 2019, we adopted a more aggressive stance to turn around the business and it will be all hands on deck for the team, with the group chief executive officer personally leading the efforts,' said the group.

‘Our centralised procurement efforts have been gaining notable traction in delivering cost savings. Lastly, greater efforts have also been placed in research and development to create a stronger pipeline of products that will help drive revenue,’ it added.

BreadTalk buys out joint venture partner in Thailand for ฿160 million

On Wednesday, the food and beverage chain operator said it has bought out its partner in a joint venture in Thailand. The group bought in on the remaining 50% interest in the company that it does not own from The Minor Food Group for ฿160 million.

The partnership was set up in 2014, with the ambition to further develop the BreadTalk brand in Thailand.

Shares of BreadTalk rose 0.57% or 0.5 Singapore cent to S$0.88 by mid-morning on Wednesday.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.