Blame it on underperforming stores, raised expenses.
Lacklustre store performance and climbing costs haunted BreadTalk in FY15 as earnings took a 66% YoY nosedive to $7.6m.
According to a report by OCBC, the steep crash is largely due to raised staff and rental expenses, underperforming stores, and impairment charges of about $5.4m.
The group’s baker division saw weak operational performance in Beijing, Hong Kong, and Malaysia, while management continues to see operational challenges for its food atrium segment from the slowdown in Mainland China.
For the year, revenue stood at $624.1m, reflecting a marginal increase of 5.9%.
Moving forward, BreadTalk is focused on cost rationalisation and increased productivity.
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