BreadTalk Group’s latest earnings reflected a mixed performance across its segments. FY16 revenue was down 1.5% to S$615m, while PATMI was 50% higher to S$11.4m. 4Q16 revenue was marginally down 1% YoY to S$153.3m, while PATMI was up 287% to S$4.4m, but we note that other income rose from S$2.0m in 4Q15 to ~S$9.0m in 4Q16.

Across segments, for the quarter, Food Atrium’s EBITDA grew 131% to S$6.8m.

On the other hand, both Bakery and Restaurant’s EBITDA dropped 8% and 38%, respectively, to S$5.8m and S$8.6m as the latter segment generally saw higher staff costs.

Pending more information from an analyst briefing later today, we are keeping our HOLD rating but our fair value of S$1.07 is under review.

A higher final dividend of 2.0 Scent/share was also declared vs. FY15’s 1.0 Scent.

Source: OCBC Research - 23 Feb 2017