Sushi player Sakae swings to fiscal 3Q net loss

Sakae Sushi outlet in Johor Bahru, Malaysia; taken September 2018.Sakae Sushi outlet in Johor Bahru, Malaysia; taken September 2018.

Sakae Holdings reported Sunday its fiscal third quarter swung to a net loss of S$317,000 from a year-ago net profit of S$219,000, due to the impact of the Covid pandemic and store closures.

Revenue for the three months ended 31 March fell 19.3 percent on-year to S$4.64 million, the sushi restauranteur said in a filing to SGX.

“During 3QFY2022, economic activities were again dampened by the emergence of a new Covid-19 variant. International borders [had] not been fully re-opened,” Sakae said.

“However, as the group had taken steps to pivot towards online orders and delivery services, the negative impact of reduced restaurant operations was cushioned by revenue contribution from online orders and delivery sales,” Sakae said.

The company said it reduced the number of physical outlets to focus on the online and delivery sales, leading to reduced revenue.

For the nine months ended 31 March, Sakae reported a net loss of S$283,000, swinging from a year-earlier net profit of S$836,000. Revenue for the nine-month period was S$13.06 million, down 22.6 percent on-year, the filing said.

“During 9MFY2022, both the Singapore and Malaysia governments implemented restrictions in response to the Covid-19 pandemic on dining in restaurant group sizes and prohibition of dining in restaurant as well as reduced operating capacity. Group revenue declined due to the cumulative effects of the Covid-19 control measures,” Sakae said.

Outlook

Sakae said it was taking an outlook of “cautious optimism.”

“With the group operating primarily in Singapore and Malaysia, there is room for optimism as Covid-19 movement restriction measures are eased and the land borders between Singapore and Malaysia reopened,” Sakae said.

But it added, the food and beverage industry is facing “fluctuating changes” amid the unpredictability of the Covid pandemic.