Restaurant operator Soup Holdings expects to report a net loss for its 1HFY2026 ending June 30 after it paid a one-off pre-termination fee of $384,000.
The company says it incurred the pre-termination fee after it did not go ahead with a lease agreement for a proposed outlet, even though this fee will have a "material impact" on its financial results for 1HFY2026.
"Notwithstanding the foregoing, the termination of the lease is expected to eliminate future lease commitments and operating obligations associated with the proposed outlet, thereby avoiding potential losses and cash outflows," the company says.
The company adds that an outlet was closed for two months for relocation and as such, it generated overall lower revenue and profitability during the affected period.
The relocation was completed and the outlet resumed operations at its new premises at the end of May.
"These events are part of the group’s ongoing efforts to optimise its business operations and align its resources with its strategic priorities, including the rationalisation of its outlet portfolio and the enhancement of overall operational efficiency," the company says.
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Soup Holdings did not disclose the location of the said outlets.
In its FY2025, the company incurred a net loss of $1.23 million on revenue of $37.5 million.
Soup Holdings shares last traded at 4.6 cents, valuing the company at $13.73 million.
