KUALA LUMPUR (May 26): OldTown Bhd shares fell 11.65% in active trade at mid-morning today after its net profit for the fourth quarter ended March 31, 2017 slumped to RM9.91 million from RM18.36 million a year earlier.

At 10.21am, OldTown lost 36 sen to RM2.73 with 11.18 million shares traded.

OldTown yesterday said its revenue for the quarter rose slightly to RM106.96 million from RM104.52 million in 2016.

For the financial year ended March 31, OldTown posted net profit of RM60.77 million versus RM52.27 million a year earlier.

It proposed a final single tier dividend of 1 sen per share and a special single tier dividend of 3 sen per share in respect of the financial year ended March 31.

Reviewing its performance, OldTown had said its café chain operation recorded lower profit due to lower revenue for the segment and that the group had provided for doubtful debts for overdue trade amounting to RM4.76 million.

On its prospects, OldTown said the weak consumer sentiments that continue to prevail will impact the consumer purchase behaviour with regards to eat out of home occasions and in turn will create a tougher business environment for the café chain operations.

“We also expect more of the tightening regulations and policies of the government that directly impact F&B industry and this will further create an adverse impact on the business.

“The Group shall continue its efforts to maintain its margin and improve its topline growth for café chain operation through various initiatives namely streamlining the menu offerings and focusing on building brand loyalty among customers via consistent product quality and customer service,” it said.