Alexa
  • Directory of Taiwan

Cafe chain operator posts 5% growth in Q3 earnings

Cafe chain operator posts 5% growth in Q3 earnings

Taipei, Oct. 27 (CNA) Gourmet Master Co. Ltd., the 85 Degree C cafe chain operator in Taiwan and China, said Saturday it posted a 5 percent increase in net profit for the third quarter of this year despite the weakness of economic fundamentals. During the July-September period, Gourmet Master recorded NT$260 million (US$8.87 million) in net profit with earnings per share (EPS) at NT$1.8, while its consolidated sales rose 8 percent from the second quarter to NT$3.45 billion, which was also up 2 percent from a year earlier. In the first nine months of this year, the cafe chain operator posted NT$838 million in net profit, up 5 percent year-on-year, with EPS at NT$5.8, while consolidated sales during the period rose 21 percent from a year ago to NT$9.95 billion. Gourmet Master said the company defied the slowing economy in Taiwan and China in the past quarter to enjoy an improving bottom line, although the depreciation of the Chinese yuan against the Taiwan dollar did impose some impact on its revenue. In the first half of this year, China accounted for 68 percent of the cafe chain's total sales and Taiwan made up 27 percent. The United States and Australia accounted for the remaining 5 percent. The company did not disclose the sales breakdown in regions for the third quarter. Gourmet Master said it expects sales for the fourth quarter will rise 20-30 percent from the third quarter on hopes that the China government will come up with fresh economy stimulus measures after the once-a-decade power transition that will take place at the 18th National Congress of the Communist Party of China on Nov. 8. In addition, the fourth quarter is the peak season for the bakery sector in China, which is expected to boost revenue of the cafe chain, which sells not only beverages but also bread and cakes. Gourmet Master said it is planning to open about 30 new outlets in China in the fourth quarter to raise the number of shops on the mainland to 390 by the end of the year. (By Maranda Hsu and Frances Huang)


Updated : 2021-05-08 17:44 GMT+08:00