Here Are 20 Key Numbers That Describe the Business of BreadTalk Group Limited

BreadTalk Group Limited (SGX:5DA) released its 2016 annual report in April this year.

The company divides its business into three main segments, namely, Bakery, Food Atrium, and Restaurant. BreadTalk’s latest annual report contains insights on its business. Here are 20 numbers I managed to pull together that would help investors better understand the company:

1. In 2016, BreadTalk recorded $615 million in revenue, down 1.5% compared to 2015. However, the company recorded an EBITDA (earnings before interest, taxes, depreciation and amortization) of $87.5 million, up 12.9%. Although BreadTalk’s revenue was down, its earnings managed to grow.

2. BreadTalk generated a healthy $53.3 million in free cash flow in 2016, nearly double the $29.0 million seen in 2015. More importantly, the cpompany reduced its net debt position to $60.7 million in 2016, a significant fall compared to 2015’s net debt position of $106.8 million. BreadTalk’s net debt to EBITDA also declined to 0.69 in 2016 (from 1.38 in 2015), while its EBITDA to interest expense ratio stood at 14.8 times.

3. Singapore accounted for 55% of BreadTalk’s total revenue in 2016. China and Hong Kong were next at 28% and 11%, respectively. The rest of the world contributed 6% to BreadTalk’s revenue. In other words, three countries accounted for 94% of BreadTalk’s business.

4. The Bakery segment was the largest segment in the company in 2016 – it accounted for 50% of total sales. Food Atrium weighed in with 26% of revenue while the Restaurant segment pitched in the remaining 24%.

5. BreadTalk generated profit before taxes (PBT) of $29.7 million in 2016. The PBT from the Restaurant segment was by far the most important for the company as it came in at $24.1 million. The Bakery segment was second with a PBT of $11.7 million. The Food Atrium segment had a poor year as it recorded a negative PBT of $7.2 million.

6. BreadTalk had a net margin of 1.9% in 2016 and a return on equity of 8.8%. This indicates that the company has some work to do to improve the profitability of its business.

The numbers above help size up the business of BreadTalk and provides investors with an overview of what its business looks like, and how it operates.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.