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’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’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 “cautiously optimistic” as its “performance in the first half of the financial year is traditionally weaker compared to the second half”.
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In response to current economic headwinds, the group adds that it is “actively refining its menu offerings to remain competitive, while implementing digital initiatives aimed at enhancing dining experience and improving operational efficiencies”.
Shares in Tung Lok Restaurants closed flat at 11.5 cents on Nov 4.
