Soup Holdings has warned it will report a loss for its current FY2024 ending Dec 31.
The company, known for running the chain of Soup Restaurants, attributes the losses to various reasons, such as outlets that were closed for renovation and also due to redevelopment works by landlords.
The company says two of its newly opened outlets and its newly established central kitchen will incur losses too.
And in a by now common refrain for F&B operators, Soup Holdings blames its poorer showing on manpower and rental costs surging at a faster clip than revenue.
It is also planning to book impairment losses on its plant and equipment and last but not least, it generated lower revenue from its food processing and distribution business segment.
In its most recent 1HFY2024 ended June, the company reported earnings of $167,000, down 87.9% y-o-y. Revenue in the same period was down 0.6% y-o-y to $20.7 million.
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As at June 30, the company held a cash balance of $10.4 million, equivalent to more than half its market cap of $18.8 million, based on its last traded price of 6.3 cents.
