Sakae Holdings reported Thursday its fiscal first quarter net loss widened to S$831,000 from S$366,000 in the year-ago period as the sushi chain worked to streamline its operations.
Revenue for the quarter ended 30 September declined 9.5 percent on-year to S$9.42 million, the sushi restaurateur said in the a filing to SGX.
“Group revenue decreased as a result of streamlining the group’s operations, resulting in reduction of revenue, with a corresponding decrease in the cost of sales and labor costs,” Sakae said.
Labor costs fell 12.2 percent to S$3.6 million, Sakae said.
The gross profit margin rose to 67.4 percent from 67.1 percent in the year-ago quarter on “effective management of operations,” the filing said.
Other operating expenses increased by 0.7 percent on-year to S$2.92 million, mainly on higher delivery commissions due to increased delivery sales, the filing said.
Sakae pointed to a rocky road ahead.
“With the current uncertain global economic climate not showing clear signs of resolution in the near future, combined with the ever present intense competition within the food & beverage industry as well as the perennial acute labor shortage, the croup expects operating conditions to be challenging as food, labor, rental and utilities costs continue to rise in the foreseeable next 12 months,” Sakae said.