When Dian Xiao Er became independent of Soup Restaurant last year, the expectation was that Soup Restaurant's earnings would be hit badly. If we look at the year 2011, 42% of Soup Restaurant's profit was contributed by Dian Xiao Er.
In 2012, although profit from continuing operations, net of tax, jumped 126.9% year on year, removing the contribution by Dian Xiao Er reveals a more modest increase of 59%. Even so, we should take note that the performance of Soup Restaurant was boosted by a one time gain from the divestment of Dian Xiao Er to the tune of $3.4m.
If we examine my initial motivation to invest in Soup Restaurant last year, a big part of it was because I thought the probability of a special dividend being declared was quite good. Of course, since I like Soup Restaurant's food and would patronise their restaurants monthly, there is the benefit of getting a discount as a shareholder during my visits too.
Well, the special dividend did not happen then as the management decided to plough the money back into the business. However, since then, I have received dividends twice and this would be my third round of dividends.
Total declared this round:
Interim dividend: 0.35c
Special dividend: 0.8c
Final dividend: 0.35c
As some would say "third time lucky" and a special dividend has been included this time round. A total dividend payout of 1.5c translates into a dividend yield of 10.95% based on the high of 13.7c per share touched this morning. Without the special dividend, dividend yield would be a less exciting 5.1% but still not too shabby.
See financial statement: here.
Related posts:
1. Soup Restaurant: Special dividend?
2. Soup Restaurant's S-card.
6 comments:
At a 15% discount at the restaurant for shareholders, would seem to be a good deal eitherway. Restaurant is pretty crowded most weekends.
Hi Lizardo,
Weekends? Too crowded for me. I would go on weeknights.
The last time I saw a queue outside Soup Restaurant in VivoCity, I thought to myself that those people in the queue probably were not very hungry.
I would faint from hunger if I had to queue. ;p
hi AK, I check Soup Restaurant website, no ex-date for this round dividend yet. Is it correct? So still can enjoy the 1.15c if buy now?
Special dividend: 0.8c
Final dividend: 0.35c
Hi Ah John,
It has not even gone CD yet. Haha.. ;)
So, yes, I think anyone buying in now would still be entitled to the special dividend. Just hope that they do not decide to do a U-turn. ;p
Special dividend:
SGD 0.0080 Per 1 Ordinary share
Final dividend:
SGD 0.0035 Per 1 Ordinary share
Date payable: 20-05-2013
DIVIDEND
Ex. Date: 7 May 2013
Post a Comment