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.
See also: Grand Venture Tech reports 1QFY2025 earnings of $2.6 mil, up 27.7% y-o-y
Tung Lok shares last traded at 8.5 cents.
