No Signboard Seafood reports fiscal 3Q21 net loss narrowed slightly as pandemic restrictions weigh

The No Signboard Seafood outlet at VivoCity mall in Singapore; taken in 2018.The No Signboard Seafood outlet at VivoCity mall in Singapore; taken in 2018.

No Signboard Seafood reported Friday its fiscal third quarter net loss narrowed slightly to S$1.65 million from S$2.0 million in the year-ago quarter as the Covid-19 pandemic restrictions continued to weigh on results.

Revenue for the April-to-June period climbed 54.8 percent on-year to S$1.77 million, the iconic chilli crab restaurateur said in a filing to SGX.

“The group’s revenue continues to be impacted by the travel restrictions, safe distancing regulations implemented due to the Covid-19 pandemic and the new Covid-19 measures announced on 14th May 2021, which took effect from 16th May to 13th June 2021 whereby dine-in activities were suspended, have further impacted our revenue,” No Signboard said in the statement.

“The ongoing travel restrictions have significantly reduced the tourist footfall at our seafood outlets,” it added.

The seafood restaurants’ sales accounted for 34 percent of total revenue for the quarter, down from 58 percent in the year-ago quarter, the filing said.

Hotpot sales contributed 34 percent of third quarter revenue, compared with 17 percent in the year-ago period, the filing said.

Quick-serve restaurants accounted for 25 percent of total revenue in the quarter, compared with 12 percent in the year-ago period, the filing said.

Other income in the third quarter rose 6.5 percent on-year to nearly S$753,000 due to the job support scheme (JSS) grant funded by the Singapore government amounting to S$181,000 and the recognition of a S$341,000 gain on a lease termination in the quarter, the filing said.

Lower variable expenses in the third quarter were offset by an increase in expenses incurred for take-away foods packaging, purchase of cleaning and disinfectant materials, and purchase of protective equipment and an increase in commission paid to food delivery platforms, No Signboard said.

For the first nine months of the fiscal year, No Signboard reported a net loss of S$4.76 million, narrowing from the year-earlier period’s S$5.62 million net loss. Revenue for the October-to-June period fell 42.9 percent on-year to S$6.43 million, the company said.

Beer business gone flat

“The beer business was significantly impacted in the third quarter as most of the outlets where its beer is distributed have been closed
during the circuit breaker period and remained closed as of 30 June 2021,” No Signboard said.

For the nine-month period, the beer business reported a narrower net loss of S$353,809, compared with a net loss of S$719,682 in the year-ago nine-month period.

The company issued a cautious outlook, pointing to the re-institution of dine-in bans for the 22 July to 10 August period.

Cautious outlook

“These measures are expected to further affect the group’s revenue adversely,” No Signboard said. “Given that the situation is fluid and rapidly evolving as government policies change in tandem, the group expects the operating environment of the local food and beverage industry to remain challenging in the next 12 months, due to uncertain economic outlook aggravated by respective travel restrictions imposed globally that dampened consumers’ demand and spending.”

“The group’s current priority is to preserve cash to support working capital requirements, continue to keep operating costs low and to ensure that the group has sufficient resources to tide through this period,” the company said.

No Signboard said it will open a new outlet with a new concept at Northpoint in September; the outlet will be a casual dining Northern Chinese dim sum specialty shop.

“The quick service concept will help to reduce the manpower requirements at the outlet. This will represent the group’s first venture into the suburban malls, where there are ready catchment population and has proven to be more resilience during this Covid-19 pandemic,” No Signboard said.