Coffee shop operator Kimly sees full-year profit jump 55.7%; to pay special dividend

A photo from June 8, 2019. Kimly reported a 55.7 per cent growth in net profit to S$39.3 million for the full year ended Sep 30, 2021. PHOTO: LIANHE ZAOBAO

SINGAPORE (THE BUSINESS TIMES) - Coffee shop and foodcourt operator Kimly posted a 55.7 per cent surge in net profit to $39.3 million for the full year ended Sept 30.

This comes on the back of a 13.2 per cent rise in revenue across the board to $238.6 million, the group said in a bourse filing on Thursday (Nov 25).

Kimly has proposed a final dividend of 0.84 cent per share and a special dividend of 0.6 cent per share.

Taking into consideration the 0.56 cent per share interim dividend paid in July this year, the total dividend declared for financial year 2021 stands at two cents per share.

Kimly's food retail division contributed the most to the group's revenue growth, logging a $15 million increase to $119.4 million for the year. This was due mainly to higher revenue contributions from existing stalls, growth in food delivery sales and contributions from six new food stalls and one new confectionary shop.

Its outlet management division saw revenue go up $9.2 million to $112.5 million due to contributions from three new coffee shops and overall improvement in footfall.

Revenue from its outlet investment business division more than doubled, from $3.1 million to $6.8 million, mainly due to the sale of beverages and tobacco products, rental income, as well as cleaning and utilities services provided to food outlet properties acquired in the second half of financial year 2020.

Cost of sales grew at a much slower pace than revenue mainly due to government grants and rental rebates, the group said. Cost of sales as a percentage of revenue fell from 73.2 per cent in financial year 2020 to 67.2 per cent in financial year 2021.

Selling and distribution expenses went up $2.6 million to $10.2 million due to higher online food delivery fees and an increase in packaging materials used. The group also registered a $4.1 million increase in administration expenses, primarily due to higher spending on employee benefits.

Kimly's directors said the group is committed to expanding its network of food outlets across Singapore through joint ventures and acquisitions. They cited the recent acquisition of a 75 per cent stake in Tenderfresh as a demonstration of this strategy.

"This strategy is expected to further strengthen our revenue base for future growth and enhance our shareholders' value. While there is still uncertainty from the ongoing pandemic, we will continue to monitor the situation closely and prepare ourselves in a strong way for the post-pandemic environment," they said in a press release.

The directors also noted growing demand from the food delivery business.

"Through the integration of new technologies for the upgrade of our central kitchen, we are confident to improve the productivity and reduce the reliance on manpower. We will continue to strengthen our income base by enhancing our food offerings and operational efficiency for greater customer and shareholder value," they said.

Kimly shares ended Thursday up 0.5 cent, or 1.25 per cent, at 40.5 cents.

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