In addition there were other factors and

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In addition, there were other factors and circumstances that affect to the overall revenue decrease as follows : Revenue from food and beverage for the year 2016 was Baht 671.42 million which was decreased by Baht 25.64 million, or -3.68% compare with the year 2015 directly affect from the life style restaurant business segment due to the passing of His Majesty the Late King Bhumibol Adulyadej in October 2016. Revenue from business and investment advisory has decreased by Baht 6.5 million, or 37% due to changing in the scope of advisory service during the current year as the Company focused in the food and beverage retails segment as core business of the company. The decrease in sub-franchise revenue Baht 1.53 million, or 63.22% due to the divestiture of Mr. Jones International Co., Ltd. a) Food & Beverage Retail The Company consolidated revenue from sales comprising revenue from stand-alone restaurant outlets in the Thonglor, Sukhumvit, Silom and Ladprao area of Bangkok, Coffee Bean & Tea Leaf stores, Domino’s Pizza store, and Kyochon fried chicken stores. Revenue from this business segment decreased from last year by Baht 27.17 million or -3.88% due to the closure of non-performing restaurant outlets during the year 2016 as described in Table 14.3, as well as the divestiture of Mr. Jones International Co., Ltd. (“Mr. Jones”) in September 2016. 49 Food Capitals Public Company Limited ANNUAL REPORT 2016
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Number of equity stores (*) Investment in Mr. Jones International disposed effect from 5 September 2016. b) Business advisory, investment and property development services In 2016 revenue from services business was THB 11.28 million, a decrease of THB 17.65 million or -61.65% compared to 2015. The revenue decrease was summarised in Table 14.4 below. Breakdown of revenue from advisory service 50 Food Capitals Public Company Limited ANNUAL REPORT 2016
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Cost Breakdown by Segment In 2016 the cost of sales and services from continuing operations amounted to THB 252.87 million, a decrease of Baht 5.81 million or -2.25% compared to 2015 were due to a decrease in costs relating to food & beverage retails. With the F&B operations, the cost of sales in the food & beverage business amounted to Baht 252.87 million which was 37.40% of total food & beverage revenues derived from cost of food and beverage sales compare with cost of F&B of Baht 258.68 million, accounted in previous year, representing 37.11% of F&B revenue. Cost of F&B sales changed by 2.25% due from the decrease in number of stores as resulting from the closure of non-performing stores during 2016. The Company try to control material prices and select proper vendor to maintain cost of sales and products quality. • In 2015, the Company recognised revenue from investment service income from Red Planet Hotels Limited. During the year 2015, the Company changed investment classification in Red Planet Hotels in accordance with the Financial Reporting Standards due to cease in significant influent in Red Planet Hotels effect from 30 June 2015.
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