Bad Operational Results Force Food Junction Holdings Ltd. To Close Restaurants According to BAC Company Report
31 Jan 2012 • by Natalie Aster
LONDON – 2010 was not a successful year for Food Junction Holdings: increased operating expenses and declining revenues pilled the indices down. Thus, revenue dropped down by 21% and amounted to SGD 47.4 M. Net income slipped to SGD 2.6 M which is 39.5% decrease comparing to FY 2009. Risen operating expenses were mainly brought, on one hand, by commencement of two new food courts at NUS and Nex, acquisition of Lippo Chiuchow restaurant, and opening of The Medzs restaurant.
On the other hand, Food Junction had to close Malone’s restaurant in Suzhou (Hong Kong) in July 2011 due to its weak performance. The shutdown entailed a financial loss dragged by all the compensations paid to former employees.
Another weakening factor for company’s financials was absence of F&B sales from self-operated stalls. License fee income collected from third parties running operations on Food Junction self-operated stalls was not sufficient to cover the loss from ceased F&B sales.
However, 2012 is expected to be more profitable for the company as newly opened Medzs and Lippo Chiuchow are commercially successful according to 2011 operational results. Food Junction plans to diversify its service portfolio and lower the share of F&B contribution to total revenue, which would make the company financially more solid.
Q3 2011 results were noticeably weaker comparing to first and second quarters of the year. Revenue amounted to SGD 13.7 M and net income equaled SGD (0.8) M. negative net result reflects compensational expenses related to Malone’s closure.
Founded in 1993 and headquartered in Singapore, Food Junction Holdings Ltd engages in catering business in Singapore, China, Malaysia and Indonesia. The company owns self-operated stalls, cafes and restaurants mostly focused on Asian cuisine. Exceptions: Malone’s offers American-style snacks, and Medzs restaurant has Mediterranean dishes to offer. the enterprise is public and registered at Singapore SE under the ticker FOOD.
All the details on the company’s activities, financials, news, peers can be found in the report "Food Junction Holdings Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis" recently published by Market Publishers Ltd.
Title: Food Junction Holdings Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis
Date: Jan, 2012
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