COFFEESHOP operator Kimly : 1D0 0% posted a 6.1 per cent drop in net profit to S$17.5 million for its first financial half year ended Mar 31, from S$18.7 million the year before.
Revenue rose 1.9 per cent to S$158.5 million, from S$155.5 million in the year-ago period, the group said on Thursday (May 9).
Earnings per share stood at 1.41 Singapore cents for the first half, down from 1.5 Singapore cents in the year-ago period.
The board has declared an interim dividend of one Singapore cent per share as a “token of appreciation” for the company’s shareholders.
Adjusted for a S$1.5 million corporate income tax rebate, net profit for H1 would be S$16 million, Kimly said. This is a mere 0.9 per cent lower than the S$16.2 million recorded a year ago, excluding a S$2.5 million gain from the disposal of Kimly’s confectionary business in December 2022.
Kimly’s outlet management and food retail divisions contributed to its higher revenue, with three coffeeshops that opened in FY2023 and another two opening in FY2024.
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In tandem with the increase in revenue, cost of sales rose by S$1.4 million to S$114.4 million in the first half of the financial year, Kimly said.
“This was largely due to higher employee benefit expenses arising from the salary adjustment across the board, higher utilities charges and cleaning fee expenses but was partially offset by the decrease in food ingredient expenses due to a change in the sales mix.”
Administrative expenses registered an increase of S$0.5 million to S$14.2 million in H1. This was mainly due to higher employee benefit expenses, attributed to an increase in headcount and across-the-board salary adjustments, Kimly said.
It added: “The food and beverage industry in Singapore grapples with numerous challenges amid a competitive landscape and soaring operational expenses. Escalating costs of raw materials and utilities pose a significant hurdle, putting considerable strain on food outlets to offer competitive prices while ensuring sustainable profitability.”
Looking ahead, Kimly sees the halal market as one area it plans to expand towards to capture the growing demand for halal-certified food products.
“In addition, the group is dedicated to opening more food outlets with the aim of further strengthening and solidifying its market presence and leadership position in the F&B industry.”
Shares of Kimly closed 1.6 per cent or S$0.005 lower at S$0.305 on Thursday.
