Sakae Holdings sinks in the red with S$13.4 mln net loss for FY2019
Sakae’s share price was unchanged on Friday after the post-market announcement was made, at S$0.085.
Restaurant chain owner Sakae Holdings on Thursday posted a net loss of S$13.4 million for the fiscal financial year ended June 30, mostly due to an impairment of S$3.2 million from the purchase in equity interest of more than half the stake in food production and trade firm Cocosa Export.
Sakae’s share price was unchanged the next trading day after the post-market announcement was made, at S$0.085. Year-to-date, the group’s shares have tanked 0.43% lower, compared to S$0.15 on January 7, 2019.
In addition to the Cocosa Export impairment, Sakae also recorded an impairment loss of S$2.8 million under other receivables.
The group posted a top line of S$44.4 million for the financial year, a 52.8% step down from S$94.2 million in the previous financial period. Group revenue declined due to a streamlining of operations, Sakae said.
Sakae noted on the rising prices of raw materials and said that it has “effectively managed” the use of those materials for its restaurant business and maintained its gross profit margin at about 62.8%.
Administrative costs fell by 47.7% from S$40.9 million in the previous financial period to S$21.4 million while labour costs fell by 46.9%, from S$31.1 million to S$16.5 million.
Sakae said that the food and beverage industry is facing “intense competition” and cited the “acute labour shortages” faced by the restaurateur, Sakae said it expects ‘operating conditions to be challenging as food, labour, rental and utilities costs continue to rise in the foreseeable next 12 months’.
‘The group continues to work hard to manage the challenging operating conditions in the food and beverage industry,’ it added.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with 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
- Try a risk-free trade
- 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.
