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FOOD & BEVERAGE | Staff Reporter, Singapore

Old Chang Kee profits down 25.8% to $0.7m in Q1

Its signature puffs continue to be a main contributor to the business.

Food and beverage chain Old Chang Kee profits turn sour after it fell 25.8% YoY to $0.7m in Q1.

According to the group's financial statement, revenue rose 10.7% YoY from $18.6m to $20.6m.

Revenue from retail outlets rose by the same amount, thanks to contributions from new and existing outlets. This was offset by revenue loss from closed outlets.

As of 30 June, the group has 89 outlets in Singapore.

Its signature puff products remain the main contributor to revenue after it gave 33.6% to the group's total.

Cost of sales jumped 15.1%, boosted by higher revenue and higher food cost in Q1.

Old Chang Kee commented, "The Group expects operating lease expenses (rental) and labour and raw material costs to remain high in the next reporting period and the next 12 months, and believes that the labour market will continue to remain tight. The Group will be integrating its factory in Iskandar Malaysia and its expanded factory facilities in Singapore at 2 and 4 Woodlands Terrace in the coming months. These will provide the Group with a platform to expand its product range and increase its production efficiency, and grow its business both locally and regionally."

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