Food and beverage maker BreadTalk Group on Monday reported a 22.2 percent jump in third-quarter profit as the group continued its focus on profitable segments while exiting underperforming businesses.
Net profit attributable to shareholders climbed to about S$4 million in the three months ended September 30 from S$3.3 million a year earlier, the company said in a regulatory filing.
Revenue at BreadTalk, whose brands include Toast Box, Food Republic, Din Tai Fung and Bread Society, fell 2 percent to S$154.3 million in the quarter.
Revenue declined 2.7 percent at its bakery division in the nine months ended Sepetmebr 30 due to weaker direct operated stores performance at Singapore, Shanghai and Beijing.
The company said it is reviewing its brand positioning and menu offerings to attract customers.
BreadTalk's direct operated stores remained relatively unchanged at 255, but there was an increase of 15 franchise outlets year-on-year to 604, the company said.
During the nine-month period, company ended franchise agreements of some underperforming franchisees in China as part of its efforts to evaluate and streamline its bakery segment, the largest revenue contributor to the group.
BreadTalk said it remains on course to consolidate underperforming operations and expand its footprint in high performing markets.
The board recommended an interim dividend of 1 cent per share.
Shares in the Singapore-listed firm fell 3 percent at S$1.56 in a broader market that was down 0.2 percent. Stock has gained 37 percent so far this year.
