Singapore “Flyer” of the Week: BreadTalk Group Limited

Shares at the food & beverage company BreadTalk (SGX: 5DA) went up close to 7% on Thursday itself to rich its highest price since the end of May last year. In all, for the week, it flew 8%% to close at S$1.025 on Friday. For the uninitiated, Breadtalk was founded in Singapore in 2000 and it went public three years later.

Its brand portfolio comprises of BreadTalk, Toast Box, Food Republic, Din Tai Fung, The Icing Room, RamenPlay, Thye Moh Chan and Carl’s Jr. in China. It has operations in many parts of Asia and the Middle East.

On 25 Feb 2014, the company proudly announced that its revenue for the whole of 2013 crossed the half a billion dollar mark at $536.5 million. This was close to a 20% rise in revenue over the previous year. Meanwhile, its top-line growth also padded its bottom-line as net profit grew 13% year-on year to S$13.6 million, leading to a 13.4% increase in its fully diluted earnings per share to 4.82 Singapore cents.

Revenue improved across all of Breadtalk’s markets but it increased the most in China. Singapore continued to dominate in terms of revenue contribution but its performance was affected by the on-going labour shortage, rising rental costs and increased competition.

As of the end of last year, Breadtalk’s network (including franchised outlets) had a total of 836 outlets and this includes 737 bakery outlets, 58 food atriums and 41 restaurants. This was an expansion of 21.9% over the previous year.

The firm proposed a final dividend of 1.3 Singapore cents per ordinary share. Together with an interim dividend of 0.5 Singapore cents that’s already paid out, the total dividend declared for 2013 would be 1.8 Singapore cents. This translates to a dividend yield of 1.8% at its current price.

Going forward, Breadtalk will continue expanding in China, reinforce its position in Singapore and strengthen its operations in Thailand and Taiwan.

It is currently trading at 22 times its latest earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.