Sat, May 12, 2018 - Page 12 News List

Restaurants report mixed results amid fierce competition

CHAIN OPERATOR:TTFB said its record-high net profit was likely because of increased seasonal demand during the Lunar New Year holiday

By Kuo Chia-erh  /  Staff reporter

The nation’s major listed restaurant operators yesterday reported mixed earnings results for last quarter amid fierce market competition.

Tai Tong Food & Beverage Group (TTFB, 瓦城泰統集團), which operates six restaurant chains led by Thai Town Cuisine (瓦城泰式料理), said that net profit last quarter climbed to a record high of NT$91.79 million (US$3.08 million), a 4.77 percent annual increase from NT$87.61 million.

That translated into earnings per share (EPS) of NT$3.95, up from NT$3.77 a year earlier, TTFB said in a statement.

The strong performance could be attributed to seasonal demand during the Lunar New Year holiday, which helped stimulate sales last quarter, the company said.

TTFB, which has 100 restaurants in Taiwan and seven in China, saw its first-quarter revenue increase 2.31 percent year-on-year to NT$1.07 billion from NT$1.05 billion.

To further stimulate sales, the company plans to introduce its Thai restaurant chain, Very Thai (非常泰), to the Chinese market in the second half of the year, TTFB said.

Meanwhile, coffee and bakery chain operator Gourmet Master Co (美食達人) saw its net profit for last quarter grow 4.6 percent to NT$499.95 million from NT$477.78 million a year earlier, with EPS rising from NT$2.93 to NT$3.07 and sales increasing 14.77 percent year-on-year to NT$6.14 billion from NT$5.35 billion.

The improved bottom line was partly because of increased revenue contribution from the company’s US outlets, Gourmet Master said.

The company said it opened its 45th store in Fort Worth, Texas, last month and plans to gradually expand its footprint from US’ west coast toward the east coast.

Wowprime Corp (王品集團) bucked the trend by posting a 40.72 percent decline in net profit last quarter, which the company blamed on rising labor costs and intense competition.

Net profit fell to NT$77.37 million from NT$130.51 million a year earlier, and EPS slid to NT$1 from NT$1.7.

While sales were NT$4.1 billion last quarter, flat from a year earlier, gross margin fell from 50.63 percent to 46.88 percent over the period, it said.

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