Wowprime August sales down year-on-year, but revenue in China up

Wowprime Corp. (??), a leading restaurant chain operator in Taiwan, said on Saturday that its consolidated sales for August fell almost 7 percent from a year earlier after its operations in the local market suffered a more than 12 percent year-on-year decline in sales.

However, its operations in China bucked the downtrend, posting a more than 2 percent year-on-year increase in revenue in August, the company said.

According to Wowprime, which owns the flagship Wang Steak (????) chain, it posted NT$1.53 billion (US$48.57 million) in consolidated sales for August, down 6.99 percent from a year earlier.

A main reason for the decline was that its sales in Taiwan fell 12.81 percent from the same period last year to NT$880 million. Sales in China, however, gained 2.24 percent to NT$650 million, the company said.

On a monthly comparison, Wowprime's August sales figure was up 4.78 percent from a month earlier, while its revenue in Taiwan and China gained 7.32 percent and 1.56 percent, respectively, month-on-month.

But in terms of the first eight months of this year, Wowprime posted NT$11.13 billion in consolidated sales, down 4.33 percent from a year earlier, with sales in Taiwan down 9.19 percent year-on-year at NT$6.52 billion.

During the eight-month period, the restaurant chain operator recorded NT$4.61 billion in revenue in the China market, up 3.51 percent.

As of the end of August, Wowprime owns a total of 16 restaurant brands, operating 414 stores, with 263 in Taiwan, 149 in China and two in Singapore.

Wowprime said that while sales in Taiwan appeared slow in August, its operations in the local market has improved to some extent after a year of adjustments, including relocating stores for new business opportunities and closing some outlets to cut cost.

The restaurant operator said that it will continue to launch new brands in the Taiwan market to further push ahead with its operations in the local market and accelerate growth in the future.

In the company's annual general meeting held in June, Chairman Park Chen (???) told shareholders that while China's economic growth has slowed, his company still planned to open eight or nine new outlets in China by the end of this year. The company is targeting a 10 percent increase in sales in the China market this year, Chen said.

Shares of Wowprime plunged 3.27 percent to close at NT$133.00 on the Taiwan Stock Exchange Saturday. The weighted index ended down 1.21 percent amid fears over a rate hike by the U.S. Federal Reserve.

Source: Focus Taiwan News Channel