Singapore chilli crab icon No Signboard Holdings reported on Thursday a fiscal full year net loss of S$2.31 million, swinging from a year-ago profit of S$7.72 million, amid the impairment of its beer business.
“The restaurant businesses and the overall group operations continue to be profitable,” No Signboard said in a filing to SGX after the market close on Thursday.
But it added that its Danish Breweries beer subsidiary had underperformed senior managements’ expectations, which spurred efforts to “rationalise and restructure” the unit. That involved acquiring the remaining 20 percent it didn’t already own to obtain full control and changing leadership and replacing the entire sales team, it said.
No Signboard said it also replaced one of its brewers to address quality issues with the bottled beer.
As part of the restructuring, the company made a full impairment of S$4.31 million, compared to no impairment in the previous fiscal year, for the goodwill and intangible assets of the beer business.
Revenue for the fiscal year ended 30 September rose 8.6 percent on-year to S$26.50 million, the restaurateur said. The restaurant business revenue fell 10.4 percent on-year on lower tourist spending and intense competition in the F&B industry, it said, adding that the month-long World Cup resulted in fewer people dining out during the period.
It said its gross profit margin fell to 66.1 percent in the year, from 75.7 percent in the previous year due to a product mix change from the beer business and the introduction of budget-friendly menu items with lower margins.
Costs for raw materials and consumables used rose to S$8.92 million in the year, from S$5.92 million in the year-ago period, it said. Other operating expenses rose 90.2 percent on-year to S$3.77 million for the year, No Signboard said.
It also reported an IPO expense of S$1.21 million for the year, it said, noting it listed on SGX’s Catalist board on 30 November 2017.