TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
2
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present to
you the Group’s annual report for the financial year ended 31
March 2016 (“
FY16
”).
The F&B scene in Singapore remains challenging as restaurants
and related establishments continue to grapple with stiff
competition, high rentals, rising wages and limited manpower.
Amid these challenges, Tung Lok Restaurants (2000) Ltd
(“
TungLok
” or the “
Group
”) is making good progress in expanding
its presence and streamlining operations.
FINANCIAL PERFORMANCE
Our ongoing efforts to keep ourselves relevant and differentiated
in a highly competitive business have yielded encouraging results.
Revenue for FY16 rose 1.3% to S$86.1 million from S$85.0 million
for the financial year ended 31 March 2015 (“
FY15
”). This was
mainly due to higher revenues from two rebranded outlets and a
new outlet which opened in FY16. Increased contributions from
catering sales and existing restaurants also lifted overall revenue.
The revenue increase was partially offset by loss in revenue
contributions from the closure of two outlets in FY16 and the de-
consolidation of a former subsidiary, PT Ming Cipta Rasa (“
PT
Ming
”) during FY15.
With the rise in revenue, gross profit increased 2.2% to S$62.1
million. Gross profit margin edged up to 72.2% in FY16 from
71.5% in FY15 due to better control of food costs.
The improvement in revenue, lower food and operating expenses,
lower finance costs and higher income tax benefits enabled us
to achieve a net profit after tax attributable to shareholders of
S$611,000 in FY16. This was higher than our FY15 net profit of
S$574,000.
Fully diluted earnings per share for FY16 amounted to 0.22 cent,
compared to 0.23 cent for FY15.
Other operating income decreased by S$2.9 million or 48.9% to
S$3.1 million in FY16 from S$6.0 million in FY15. This was mainly
due to the absence of a one-off gain of S$2.2 million from the
disposal of a former subsidiary and recovery of doubtful debts
of S$0.3 million, as well as lower marketing promotion funds and
interest income.
Chairman’s Statement
