SINGAPORE (May 22): Tung Lok Restaurants (2000) has declared $0.42 million in earnings for FY17, down 30.9% from the $0.61 million posted in the previous financial year mainly due to lower revenue and reduced income tax credits.
Revenue fell 1.2% to $85.1 million from $86.1 million a year ago, attributable to loss of contributions from two closed restaurant outlets as well as overall lower restaurant sales.
Over FY17, the group registered income tax benefits of $170,000 in FY17 mainly due to tax benefits of $235,000 from the Productivity and Innovation Credit (PIC) scheme – compared to income tax benefits of $682,000 in FY16 which arose from deferred tax credits and tax benefits recognised from the PIC scheme.
In line with the lower revenue, gross profit fell by $0.9 million from $62.1 million in FY16, while gross profit margin declined by 0.3 percentage points to 71.9% compared to a year ago due to higher raw material costs.
Other operating income fell 1.5% to $61.2 million, mainly because of lower grants and credits of $0.5 million received from various government schemes.
Administrative expenses fell 3.8% to $30.3 million mainly due to lower manpower-related costs, specifically a reduction in headcounts and related staff costs of approximately $0.4 million, coupled with lower staff incentives in tandem with the lower revenue for the financial year.
On the other hand, other operating expenses grew marginally by 0.4% to $33.6 million due to higher rental, repair, and maintenance expenses.
Share of profit of joint venture increased by 20.6% to $345,000 in FY17 from $286,000 a year ago, while share of profit of associates increased to $256,000.
Shares of Tung Lok Restaurants closed flat at 12 cents on Monday.
