SINGAPORE (March 2): Sakae Holdings saw 4Q losses widen 5.1% to $4.9 million from $4.7 million a year ago, led by higher other operating expenses.
For FY16, losses widened to $13.1 million from $4.6 million while revenue fell 10.1% to $86.4 million.
Revenue for the 4Q totalled $22.6 million, a decrease of 4.2% as compared to $23.6 million in the corresponding period of the previous year.
Sakae says group revenue was affected by sluggish economic conditions and fierce competition in the F&B sector locally. In Malaysia, the weakening Ringgit contributed to lower sales values in SGD, although in the local currency terms, Malaysian sales still remained constant.
However, other operating expenses in 4Q rose 29.3% to $10.9 million. This included a provision of $3.4 million for early termination of leases as the group carries out rationalisation of non-performing outlets by the first quarter of 2017 and realised exchange losses of $0.4 million incurred by the group’s Malaysian subsidiary for the settlement of amount outstanding to the company.
Other operating expenses also included a full allowance of $1.0 million for potential impairment loss on a held for sale investment in FY2016 as the underlying conditions have not been met.
“The Group is committed to take all necessary steps to recover the value of its held for sale investment, despite full impairment allowance has been made,”says Sakae.
Shares of Sakae last traded at 35 cents on Feb 13.
