Sushi restaurateur Sakae Holdings reported on Monday a fiscal second quarter net loss of S$545,000, swinging from a year-ago net profit of S$99,000 amid efforts to “streamline” operations.
Revenue for the quarter ended 31 December dropped 39.6 percent on-year to S$11.22 million, it said in a filing to SGX after the market close on Monday.
Sakae said that revenue fell due to it streamlining its operations, with cost of sales and labor costs also declining, while the gross profit marketing increased to 62.5 percent in the quarter, up from 51.1 percent in the year-ago quarter, amid “effective management of operations.”
It added that the investigation into a soured commodity sugar deal, which resulted in the representative, buyer and US$4.3 million worth of the sweet stuff going missing, was ongoing. It had filed a police report in September.
Sakae issued a downbeat outlook.
“Due to intense competition within the food & beverage industry, in addition to acute labor shortages, the group expects operating conditions to be challenging as food, labor, rental and utilities costs continue to rise in the foreseeable next 12 months,” Sakae said. “The group continues to work hard to manage the challenging operating conditions.”