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Tung Lok $1.77 million in the red for FY2025
Tung Lok Restaurants (2000) has reported a loss of $1.77 million for its FY2025 ended March, reversing from earnings of $2.05 million in the year earlier. Revenue was down 8.7% y-o-y to $82.1 million.
In the more recent 2HFY2025 ended March, it reported earnings of $853,000, down 52.1% y-o-y. Revenue for the same six-month period was down 8% y-o-y to $43.6 million.
Tung Lok attributed the lower turnover to fewer outlets, lower contribution from its catering business, and also lower revenue from existing outlets.
Tung Lok warns that the operating landscape will remain challenging in the coming year, as persistent macroeconomic volatility continues to dampen business sentiment.
" This compounds existing industry pressures, including escalating operating costs, ongoing labour shortages, and a growing shift in consumer behaviour towards price sensitivity, which are set to weigh on profit margins," says the company in its earnings commentary.
It plans to streamline its operations and consolidate resources while remaining proactive in tapping new opportunities.
Tung Lok records loss of $2.6 mil in 1HFY2025, down from earnings of $0.3 mil a year ago
Tung Lok Restaurants has recorded a loss of $2.6 million in 1HFY2025 ended September, down from earning of $0.3 million within the same period last year.
Loss per share stood at 0.96 cents in 1HFY2025, down from an earnings per share of 0.10 cents in 1HFY2024.
This came on the back of a decline in overall revenue for the period, which was driven by poor consumer sentiment and an uncertain economic outlook in 1HFY2025.
Similarly, the group&rsquo s revenue saw a 9.5% y-o-y decrease to $38.5 million in 1HFY2025, due to a loss in revenue contribution from three outlets, which were closed during FY2024, and lower revenue from the group&rsquo s catering business amounting to $1.5 million.
As at Sept 30, gross profit stood at $27.1 million in 1HFY2025, down from $30 million in 1HFY2024, while gross profit margin saw a decline of 0.2 percentage points (ppt) to 70.3% in the same period. This was due to higher food raw materials costs.
Moving forward, the group expects the operating environment for the food and beverage (F& B) industry to remain challenging. Despite this, it says Tung Lok remains &ldquo cautiously optimistic&rdquo as its &ldquo performance in the first half of the financial year is traditionally weaker compared to the second half&rdquo .
In response to current economic headwinds, the group adds that it is &ldquo actively refining its menu offerings to remain competitive, while implementing digital initiatives aimed at enhancing dining experience and improving operational efficiencies&rdquo .
Tung Lok, Japan Foods warn of losses as restaurants face tough environment
Lower revenue, higher expenses and impairment loss are reasons cited
CATALIST-LISTED restaurant groups Tung Lok Restaurants : 540 +0.88% and Japan Foods Holding (JFH) : 5OI 0%separately issued profit warnings on Friday (Oct 25), underscoring the challenges that restaurant operators are facing.
The food businesses warned that they expect to incur net losses for the half-year ended Sep 30, 2024, with both noting the challenging economic environment. They did not comment on the extent of the losses.
Tung Lok had registered a net profit in the year-ago period, as well as the preceding six-month period ended Mar 31, 2024, which closed its previous financial year.
It said the net loss in the most recent financial H1 was due to a drop in revenue as a result of the challenging economic environment, which has affected overall sales.
But it added: &ldquo Traditionally, the group&rsquo s performance in the first half of the financial year (April to September) is weaker than that of the second half of the financial year (October to March).&rdquo
Meanwhile, JFH attributed its latest half-year&rsquo s loss to two main factors: higher selling and distribution expenses compared with the year-ago period and the provision for impairment loss on a loan to its joint venture company.
It had posted a slight profit in the year-ago period, but a loss in the previous half-year ended March 2024.
On its selling and distribution expenses, JFH noted increases in the depreciation charges of plant and equipment and right-of-use assets, manpower cost and utilities expenses.
As for the joint venture company, Dining Collective, JFH has, together with its joint venture partner, decided to wind down the business after assessing its outlets&rsquo performance and the challenging market conditions. The group thus expects an impairment charge of approximately S$0.7 million in the H1 ended Sep 30, 2024.
The information announced by both companies is based on preliminary assessments of unaudited financial results, which are being finalised. Tung Lok added that its results will be released on or before Nov 14.
Less than 5 cents I pay for this.
Joelton ( Date: 07-Nov-2023 14:36) Posted:
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Last:0.094 --
very safe entry price for Tung Lok
very safe entry price for Tung Lok
Tung Lok Signatures signs tenancy agreement for units at The Clan Hotel
Tung Lok Signatures, a wholly-owned subsidiary of Tung Lok Restaurants 540 0.00% , has entered into a three-year tenancy agreement with China Classic to operate its " Qin" restaurant in The Clan Hotel at 10 Cross Street.
The estimated rental fees for units #04-01 and #05-01 payable for the duration of the lease is approximately $1.2 million, or 8.18% of Tung Lok' s latest audited net tangible assets (NTA) of the group.
As at March 31, Tung Lok' s latest audited NTA stood at $15.1 million.
The Clan Hotel is owned by China Classic, which in turn is 50% beneficially owned by Philip Ng. Ng is a controlling shareholder of Tung Lok as he has a controlling interest in Goodview Properties, which in turn holds a 19.69% stake in Tung Lok.
As such, the tenancy agreement constitutes an interested person transaction (IPT) according to Chapter 9 of the Singapore Exchange S68 0.11% (SGX) Catalist rules.
Tung Lok earnings down 73.8% to $267,000 for 1HFY2024
Tung Lok Restaurants 540 0.00% has announced earnings of $267,000 for the six months ended Sept 30, down 73.8% compared to its earnings of $1.02 million in 1HFY2023.
Earnings per share for 1HFY2024 came in at 0.1 cents, also down 73.0% compared to 0.37 cents for the corresponding period last year.
Tung Lok&rsquo s revenue and cost of sales stayed relatively stable, increasing by 9.0% and 13.2% respectively to $42.6 million and $39.1 million for 1HFY2024.
Similarly, the company&rsquo s gross profit saw a slight increase of 7.3% to $29.9 million, with its gross profit margin slipping by 1.1 percentage points to 70.5% for the period.
However, Tung Lok&rsquo s finance costs increased by 48.7% to $412 million for the period, due mainly to the increase in interest expenses which were driven by higher lease liabilities in 1HY2024.
Administrative and other operating expenses were also up by 9.8% and 13.3% to $16.0 million and $14.3 million, respectively.
Tung Lok&rsquo s Cash and bank balances as at Sept 30 stood at $11.7 million.
0.151 
-0.005
tourist returning in droves
f& b to benefit from this
already made more than 10%
-0.005tourist returning in droves
f& b to benefit from this
already made more than 10%
ozone2002 ( Date: 22-Jun-2023 08:07) Posted:
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0.129 --
Time to revisit Tung Lok
earnings returning
Time to revisit Tung Lok
earnings returning
Ready-to-eat meals a growing business for restaurant group Tung Lok
CEO Andrew Tjioe expects the return of tourists to boost financial performance too
ANDREW Tjioe&rsquo s refrigerator is usually full of frozen ready-to-eat dishes, ranging from braised pork to dumplings. Produced at the central kitchen of Tung Lok Group &ndash the restaurant operator he founded &ndash these dishes have become mainstays of his dining table.
&ldquo I use them in our family regularly, if not on a daily basis,&rdquo says Tjioe, who is also chief executive of the Catalist-listed restaurant group.
Herbal chicken, braised pork shank and guo tie (potstickers) are his family&rsquo s favourites, he says. &ldquo So, I have to ensure that the products are of good quality, healthy, and you can have it on a daily basis.&rdquo
Tung Lok&rsquo s foray into the frozen food business started before the Covid-19 pandemic. It turned out to be a fortuitous move, giving the company a stream of revenue even when the dining scene was heavily curbed in 2020 and 2021.
Sales of frozen food shot up 400 per cent in the first year of the pandemic, Tjioe says, since people could not dine out. The company used the downtime at its restaurants to increase the variety of ready-to-eat dishes offered, which now stands at 64 items.
&ldquo My chefs were very free,&rdquo Tjioe says with a laugh. &ldquo Rather than waiting, they might as well do R& D (research and development).&rdquo
Besides Chinese cuisine, the group also branched into other cuisines: plant-based, Western and even halal.
Any food that takes time to braise or stew is a good candidate for preparation in the central kitchen, which supplies its network of restaurants, Tjioe says.
&ldquo How can you make goulash in the kitchen on the same day, and expect that this will be good? No way,&rdquo he points out. &ldquo The taste is better if it is done yesterday.&rdquo
A blast freezer allows food to retain its freshness in taste. There is &ldquo no better way&rdquo of maintaining consistency in taste and quality than using a central kitchen, he says, adding that this model is also &ldquo idiot-proof&rdquo for staff: &ldquo As long as they&rsquo re very clear in their mind, don&rsquo t measure wrongly, nothing can go wrong.&rdquo
The bulk of Tung Lok&rsquo s ready-to-eat sales are made via e-commerce platforms and retail corners at its restaurants. But Tjioe hopes to supply businesses in the future: &ldquo If you want to open a restaurant, you can just select 20 or 30 items from our 64 items and you&rsquo re in business. (It&rsquo s) very easy, you&rsquo re no longer chef-dependent.&rdquo
All hands on deck
As for Tung Lok&rsquo s own restaurants, bulk cooking in the central kitchen has helped boost productivity. This means restaurant staff can concentrate on tasks that the kitchen cannot perform, such as serving customers.
&ldquo That&rsquo s how you maintain the same amount of sales, revenue, but with much less manpower,&rdquo Tjioe says.
Like others in the food and beverage (F& B) industry, Tung Lok is facing a labour crunch even as manpower costs have grown. Last year, he says, wages rose 15 per cent year on year.
&ldquo That&rsquo s why we switched to robots, and we deploy, at the moment, 20 food delivery robots at different restaurants,&rdquo he remarks.
The group has about 500 employees now &ndash a level Tjioe described as &ldquo leaner and meaner&rdquo &ndash down from 800 just before the pandemic hit.
&ldquo I&rsquo ve never laid off anybody (before), and I laid off 200,&rdquo he notes, recalling the difficult decision he made before the &ldquo circuit breaker&rdquo or partial lockdown in April 2020. &ldquo I just thought that if we don&rsquo t do it, we&rsquo ll be in trouble.&rdquo
After some foreign workers headed back to their home countries, total headcount fell further to 400.
What Tjioe did not expect was that the company would be approached by the authorities to supply meal boxes to migrant worker dormitories. While Tung Lok was &ldquo not big in catering&rdquo , it took on the business since Covid curbs meant that many staff would otherwise have had to stay home.
&ldquo Every outlet can only have two (staff) inside and two outside&hellip so what am I going to do with the rest? Go to the central kitchen to do packing,&rdquo he says.
For four months, everyone in the company was mobilised &ndash including the executive chef, general manager and Tjioe himself &ndash to produce 15,000 bento meals a day, almost round the clock.
&ldquo If the CEO can become a packer, nobody cannot,&rdquo he recalls. &ldquo It was an experience.&rdquo
Bouncing back
Government support for businesses during the pandemic was critical, says Tjioe. Without it, there would have been &ldquo more bloodshed&rdquo . Tung Lok avoided losses in 2020 as a result, although it was &ldquo kind of squeezed&rdquo by the on-and-off-again dine-in restrictions in 2021.
But by last year, with the lifting of restrictions, business bounced back to pre-pandemic levels.
Revenue nearly doubled to S$39.1 million for the half-year ended Sep 30, 2022, from S$20.3 million in the year-ago period.
This helped the company rake in a net profit of S$1 million, compared with a loss of S$3.4 million previously.
Over the past year, the company also took the opportunity to reorganise its offerings. It closed eight outlets, most of which had leases that were up for renewal: &ldquo We just didn&rsquo t renew, especially when the landlord was unreasonable by asking for more rent during the pandemic.&rdquo
Tung Lok also downsized some restaurants that were &ldquo too big&rdquo , and used the excess space for a separate brand.
One example is Douraku Sushi, which occupies part of the 10,000-square-foot space that used to belong entirely to Tung Lok Seafood at d&rsquo Arena along Upper Jurong Road. The space turned out to be excessive for just one restaurant during the pandemic, he adds.
As a restaurant business, it is important to be constantly clued in to what is going on in the market, says Tjioe.
The typical &ldquo spender&rdquo these days is aged 25 to 40, health-conscious, and cares about sustainable food sources. That is the direction taken by Tung Lok&rsquo s new dining concept Qin Restaurant and Bar.
&ldquo We care about the environment, especially after going through those very terrible periods of the haze,&rdquo he says. The company decided then to drop any use of palm oil, as the haze is mainly caused by fires set to clear land for such plantations.
Tjioe is also hopeful that improvements in farming technology in Singapore will make it viable for the company to turn to more local food sources, even if they may be pricier.
As for the outlook this year, he says: &ldquo F& B will always have a place in our society for as long as Singapore&rsquo s economy continues to grow, especially when funds are still coming in, and investments are still coming in.&rdquo
He considers it fortunate that Tung Lok was &ldquo not so much affected&rdquo by the low tourist arrivals in recent years, as its main customers are locals and businesses. Still, China&rsquo s reopening is expected to have a &ldquo positive impact&rdquo on Tung Lok&rsquo s financial performance, driven by the influx of conferences and corporate events, as well as tourist spending.
Tjioe also noted that Singapore has been attracting the super rich thanks to its swift handling of Covid-19. This flow of &ldquo hot money&rdquo into the city-state has brought along clientele who spend upwards of S$20,000 per meal at Tung Lok&rsquo s fine-dining establishments.
While such high-end expenditure was not uncommon pre-pandemic, it is surprising that Singapore is &ldquo enjoying this&rdquo at a time of global economic uncertainty, he adds.
0.149 
+0.027
10 pax chiong ah!
+0.02710 pax chiong ah!
Tung Lok Restaurants (2000)
THE restaurant chain operator and caterer sank into the red in the second half of FY2020 ended March, with a net loss of S$1.2 million, reversing from earnings of S$405,000 a year ago.
Revenue for the period was hit when the novel coronavirus struck Singapore in late January - the beginning of Tung Lok' s Q4 and a traditionally busy period for its restaurants.
H2 top line dropped by 5.9 per cent from S$42.4 million to S$39.9 million.
For the full year, losses widened to S$2.6 million from S$694,000 a year ago revenue dipped by 3.2 per cent from S$80.6 million to S$78.1 million.
Loss per share for FY2020 stood at 0.94 Singapore cent, widened from 0.25 cent from the preceding year.
Net asset value per share as at March 31 was 4.57 cents, versus 5.51 cents a year ago.
No dividends have been proposed because the group was loss-making.
Tung Lok warns of FY2020 net loss
THU, MAY 07, 2020 - 6:27 PMCATALIST-LISTED food and beverage company Tung Lok Group expects to report a net loss for its fiscal year ended March 31, 2020.
&ldquo The Covid-19 pandemic and the consequential social distancing measures have adversely affected the businesses of our restaurant outlets and catering services during the final quarter of FY2020,&rdquo it said in a statement on Wednesday, adding that the period is typically where the group&rsquo s restaurants experience significantly higher patronage and generate substantially greater revenue compared to other periods.
Tung Lok has put in place cost-cutting measures such as reduction of casual labour, salaries of executive officers and directors&rsquo fees for FY2020 as well as containment of manpower costs through requesting staff to accelerate their utilisation of annual leave, it said.
&ldquo Whether these measures will be scaled up or extended shall depend on the development of the situation,&rdquo the company added.
Currently, 11 out of 26 restaurants in Singapore remain open for deliveries and takeaways with the remaining outlets temporarily closed so as to contain operating expenses.
So far, there is no indication of any major default of accounts receivables, the company said.
&ldquo To improve liquidity, the group has secured bank facilities amounting to S$5.5 million for general working capital purposes,&rdquo it added.
Tung Lok shares closed unchanged at S$0.147 on Wednesday before the announcement was made.
https://www.businesstimes.com.sg/companies-markets/tung-lok-warns-of-fy2020-net-loss
He also buy GSH too!!
bigsmall ( Date: 31-Aug-2017 12:14) Posted:
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Not sure what is brewing. If no Goi it will languish around 0.11
latebird2000 ( Date: 04-Aug-2017 10:46) Posted:
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now is 0.25
something is brewing
something is brewing
This counter is rising fast. something is brewing?
this counter illiquid... must buy and chuck aside..
johnng ( Date: 24-Mar-2017 14:15) Posted:
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SAM GOI bought $0.118