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These 2 Companies Recently Reported Growth In Their Latest Quarterly Results

Photo credit: Rafael Matsunaga. Licence: http://creativecommons.org/licenses/by/2.0/

We’re heading to the tail-end of the earnings season now.

As is common with every earnings season, there will be some companies posting growth, some companies posting flat numbers, and some companies experiencing declines. So, which are the companies that have recently reported growth in their latest results? Let’s look at two of them:

1. Genting Singapore PLC (SGX: G13) is the first company that we will look at in this article. It released its results for the quarter ended 31 December 2016 last week.

As a quick introduction, Genting Singapore is the operator of the integrated resort, Resorts World Sentosa. Among the resort’s many attractions are one of Singapore’s two casinos and the Universal Studios Singapore theme park.

In the reporting quarter, Genting Singapore’s revenue increased by 2% to S$557.7 million while net profit actually soared by 762% to S$188.9 million. The higher net profit resulted in the company’s earnings per share (EPS) increasing from a negative 0.06 cents in the same quarter a year ago to 1.33 cents.

The company also generated free cash flow in the quarter, and ended 2016 with a strong balance sheet that had S$4.96 billion in cash and equivalents and just S$1.16 billion in debt.

One area in which Genting Singapore is looking at for future growth opportunities is the opening of an integrated resort in Japan. The country recently legalised the opening of casinos and the company commented in its earnings release that it has “sufficient financial resources and is well placed to bid for this opportunity [referring to a bid for a gaming license in Japan].”

2. BreadTalk Group Limited (SGX: 5DA) is another company that reported a good performance last week.

As a quick summary, BreadTalk has three main business segments: Bakery, Restaurant, and Food Atrium. The Bakery segment contains the company’s namesake BreadTalk bakeries.

In the quarter ended 31 December 2016, BreadTalk’s quarterly revenue dipped slightly by 1.1% year-on-year to S$153.3 million. But, its profit attributable to shareholders jumped by 286.6% to S$4.4 million, leading to an increase of similar magnitude in its earnings per share (from 0.41 cents to 1.57 cents).

BreadTalk also managed to grow its free cash flow during the quarter and strengthen its balance sheet compared to end-2015. Then there is also BreadTalk’s dividend – the company’s final dividend of 2 cents per share is double the final dividend of 1 cent per share seen in 2015.

The company has been reviewing its businesses and looking ahead, it aims to consolidate its operations, improve its supply chain, and manage costs smartly.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.