Raw materials and other consumables used came in at $9.7 million, 5.3% higher than $9.2 million a year ago. As a percentage of revenue, it remained constant at 27.6% when compared to that of 3Q17.
Employee benefits expense grew 4% $12.2 million in 3Q18 from $11.8 million previously, which RE&S says is in line with its business expansion efforts.
Meanwhile, depreciation expense also increased by 9.5% on-year to $2.2 million on the back of new outlets.
John Yek, CEO of RE&S, notes continued industry headwinds from the combined challenges of rising competition and tightening labour market.
“Revenue is healthy despite lower than expected results, due to initial gestation for new concepts and new outlets which impacted near term profitability,” comments Yek on the latest set of 3Q results.
“Going forward, we will continue to focus on improving these outlets, as well as selective new outlet openings based on our established concepts. We aim to deliver a better performance for the remaining fiscal year and ultimately derive greater value for our shareholders,” he adds.
Shares in the group closed 6.5% higher at 24 cents on Monday.
