Puff sales lift earnings of Old Chang Kee

Curry puffs from Old Chang Kee. -- PHOTO: THE NEW PAPER FILE
Curry puffs from Old Chang Kee. -- PHOTO: THE NEW PAPER FILE

SINGAPORE - Curry puff maker Old Chang Kee has cooked up a storm, with a 20.8 per cent jump in net profit to $6 million.

Revenue for the year ended March 31 rose by 5 per cent to $68.9 million.

Revenue from the retail division increased by 5.9 per cent to $67.8 million, mainly due to contributions from new outlets as well as higher receipts from the existing outlets, offset by closure of outlets.

Revenue from other services such as delivery and catering services slumped by 31.9 per cent to $1.1 million.

The group initiated a change in its delivery services in October 2012 to accept only bulk orders, leading to lower revenue in other services.

As at March 31, Old Chang Kee operated 80 outlets in Singapore, up by four from a year earlier.

Its signature puff products remained the major contributor to revenue, accounting for some 31.4 per cent of group revenue. This is slightly lower than the 33.3 share last year.

Earnings per share firmed to 4.97 cents from 4.96 cents previously while net asset value per share increased by three cents to 26 cents.

The company has proposed a final dividend of 1.5 cents a share, down from 6.5 cents last year that had included a special interim dividend of five cents.

Looking ahead, Old Chang Kee expects operating lease expenses (rental) and labour and raw material costs to remain high in the coming up as well as the next 12 months.

It reckons the labour market to continue to remain tight.