Iconic chili crab restaurateur No Signboard Holdings reported Friday a net loss of S$337,512 on start-up costs for the hotpot and quick-serve restaurants.
In addition, No Signboard said it faced the loss of revenue from the temporary closure of a seafood restaurant outlet and termination of non-performing sales contracts for the beer business.
Revenue for the quarter ended 31 March fell 0.6 percent on-year to S$6.80 million, No Signboard said in a filing to SGX.
While revenue form the Seafood restaurants dropped 7 percent on-year, mainly on a drop in average spending per customer in the restaurant business, that was offset by the hotpot and quick-serve restaurants which began operations in the first quarter and contributed S$1 million in revenue, the filing said.
Revenue from the beer segment, under the Draft Denmark brand, was weak in the quarter amid increased competition, No Signboard said.
Operating lease expense increased 36.8 percent on-year to S$992,395 in the quarter, while employee benefits expense increased 18.3 percent on-year to S$2.65 million, No Signboard said.
Depreciation and amortization expenses rose 182.2 percent on-year to S$250,073 on additional capital expenditure for equipment and renovation of new outlets, No Signboard said.
“The group’s seafood restaurant business continues to be profitable,” it said in the filing. “A food kiosk under Hawker brand was opened at Jewel Changi Airport in April 2019. The group plans to open one more outlet under the same brand by third quarter 2019.”
The restaurateur also said it has identified a location for a new seafood restaurant in Shanghai.
No Signboard operates food and beverage outlets under the brands No Signboard Seafood, Hawker Asian Burger & Buns, Little Sheep Hot Pot and Mom’s Touch Korean Chicken & Burger.
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