Food brand Old Chang Kee’s first-quarter group revenue rose 10.7 per cent year on year to about S$20.6 million (US$15.1 million).
Revenue from retail outlets has similar growth, up by about $2 million, attributed mainly to the contribution of new outlets and higher sales at existing stores, partially offset by absence of revenue from outlets closed temporarily because of mall revamps.
Old Chang Kee’s signature curry puffs were still the major contributor to its revenue, accounting for about 33.6 per cent of the total, edging up from about 33.2 per cent for the same quarter last year.
Profit before tax dropped by 20.8 per cent from about $1.2 million in the first quarter last year to about $914,000.
The group is integrating its factory in Iskandar Malaysia and is expanding its two Singapore plants with the aim of broadening its product range and increasing production efficiency to grow its business both locally and regionally.
“As the labour shortage situation in the F&B sector shows no signs of abatement, labour costs are expected to continue trending upward while general consumer sentiment remains cautious,” says executive chairman Han Keen Juan.
He says the group will continue to explore ways to improve efficiency and profit margins. This will include strengthening its brand positioning, product offerings and process flow, “and tapping on the strong support of government agencies whenever possible”.
As at June 30, the group ran 89 outlets in Singapore, down from 85 stores 12 months earlier. There are also three overseas stores, in Australia, Indonesia and Malaysia.