Sushi restaurateur Sakae Holdings warns of fiscal year loss

Sakae Sushi outlet in Singapore In Paya Lebar Square mall; taken September 2018.Sakae Sushi outlet in Singapore In Paya Lebar Square mall; taken September 2018.

Sushi restaurateur Sakae Holdings warned Thursday it expected to report a loss for the fiscal year ended 30 June, largely due to a goodwill impairment.

The impairment of S$3.2 million is related to the purchase of a 51 percent stake in Chile-based frozen seafood production company Cocosa Export, Sakae said in a filing to SGX.

In addition, Sakae said there was an around S$2.8 million impairment loss under other receivables associated with the Cocosa Export investment and related entities.

In its third quarter results, Sakae had said, “the group has assessed the business performance and future prospects of Cocosa Export, and is of the view that the value of the investment, in longer term, may not be recoverable.”

The profit guidance Thursday was based on a preliminary review of the unaudited results, Sakae said, adding more details would be disclosed after the results were finalized.

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