BreadTalk Group Limited’s Annual Report: 18 Numbers For Investors To Understand The Company

BreadTalk Group Limited (SGX: 5DA) may be best known for its pork floss bun sold in its namesake BreadTalk bakeries. But the company’s business goes beyond the pork floss bun. BreadTalk has three business segments, namely, Bakery, Food Atrium, and Restaurant.

The company’s latest annual report – for the year 2015 – provided more information about its business. Here’re 18 key figures investors might want to learn about:

  1. The Bakery segment made up 49.3% of BreadTalk’s total revenue in 2015. Food Atrium contributed 27.7% to the total while the Restaurant segment pitched in with 23.0%. This gives you a sense of how BreadTalk earns its keep.
  2. The profit picture is a little different. The Restaurant segment contributed 43.7% of BreadTalk’s total EBITDA (earnings before interest, taxes, depreciation, and amortisation) in 2015. The Bakery segment, which was the largest contributor in terms of revenue, only managed to provide 28.8% of total EBITDA. Lastly, the Food Atrium segment pitched in with 23.0% of the total pie.
  3. BreadTalk has been dabbling in the property market. In 2015, BreadTalk bought a 5.3% stake in AXA Tower for S$19.4 million. The company also sold its stake in 112 Katong for a gain of S$8.5 million in early 2016. BreadTalk remains invested in CHIJMES, TripleOne Somerset, and Beijing Tongzhou Integrated Development. According to BreadTalk chairman Dr George Quek, the company will pursue a vertically integrated strategy to secure vantage locations. BreadTalk hopes to mitigate rental pressure and achieve long term capital appreciation through this strategy.
  4. At the end of 2015, BreadTalk had close to 1,000 outlets across 16 territories and 7,000 staff under its wide umbrella. This includes 862 bakeries65 food atria and 30 restaurants.
  5. For a little trivia, BreadTalk is hoping that some of Disney’s magic rubs off this year. BreadTalk has opened a Food Republic, BreadTalk and ToastBox outlet in the new Shanghai Disneyland resort which opened in June this year.
  6. BreadTalk carries a fair bit of debt. At the end of 2015, it had net debt of S$106.8 million. At that level, BreadTalk had a net debt to EBITDA of 0.83 times and an EBITDA to interest expense ratio of 14.6 times.

All the data above gives investors a sense of the scale of BreadTalk’s operations and business. To learn more, take a look at its annual report.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended Walt Disney. Motley Fool Singapore contributor Chin Hui Leong owns shares in Walt Disney.