Soup Restaurant operator projects 2nd consecutive year of losses in 2025

Soup Holdings, which owns and operates Soup Restaurant, expects to report a loss for the 2025 financial year, making it the second consecutive year it incurred a loss.

It recorded a S$3.1 million loss in the 2024 financial year, according to its annual report for that year.

However, the public-listed company said it believes the loss in 2025 will be lower than this amount.

Soup Holdings announced this in a profit guidance released on Feb. 16, following a preliminary review of the unaudited consolidated financial results.

Expansion

Established in 1991, the company is best known for Soup Restaurant, which currently has 10 outlets across Singapore, and one in Malaysia and Indonesia each.

Facing growing competition in the food industry after the pandemic, Soup Holdings has expanded the business over the past few years.

It launched dim sum cafe outlets, exported its bottled sauces, and widened the distribution of its ready-to-eat meals.

Teahouse by Soup Restaurant and Cafe O are under Soup Holdings.

Underperformance

As a result of the expansion, an outlet and a central kitchen incurred financial losses during their initial years of operations.

Their underperformance was one of the reasons Soup Holdings cited to explain the expected loss in 2025.

The company has implemented cost-cutting initiatives to mitigate further losses.

There were also impairment losses of plant and equipment and right-of-use assets, related to three underperforming business units.

Soup Holdings also attributed the overall loss to a decline in revenue from the food processing, distribution, and procurement services segment.

This decline was due to the expiration of contracts for supplying ready meals, amid market saturation and challenging macroeconomic conditions.

Soup Holdings shares were trading at S$0.074 on Feb. 19, up 5.7 per cent the past year.

Shares hit its peak of S$0.27 per share in November 2013.

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