SINGAPORE – Curry puff specialist Old Chang Kee’s net profit rose 52.6 per cent to $3.5 million for its fiscal second half ended March 31, thanks to higher sales.

The company on Monday posted an 18.4 per cent increase in revenue for the half year to $46.1 million, aided by higher sales with the continued reopening of Singapore’s economy. This comes even as the number of outlets it has in Singapore fell to 79 from 83 as at end-March 2022.

Revenue from Old Chang Kee’s retail outlets rose by $6.1 million, or 17.2 per cent, to $41.5 million on stronger contributions from new and existing outlets. Non-outlet sales likewise increased, rising by $1.1 million to $4.6 million due to higher corporate catering orders, non-retail sales and events sales. This was offset by lower delivery sales.

The company saw a 4.8 per cent increase in selling and distribution expenses to $18 million amid higher staff costs, outlets’ utility expenses and rental expenses, and the absence of rental rebates.

Its other expenses increased by $120,000 mainly because of higher impairment for the amount due from its joint venture in Britain.

For the full year, Old Chang Kee’s net profit was up 8.4 per cent to $6.2 million, while its revenue rose 15.9 per cent to $89.8 million. The company declared a final dividend of one cent per share, unchanged from the year-ago period.

In a commentary accompanying its results, Old Chang Kee said its number of outlets was reduced partly because of infrastructural developments at various locations, necessitating the closure of these outlets.

Nevertheless, the group has and will continue with efforts to drive revenue growth, improve gross margins and rationalise its operations “to overcome manpower shortages and seek more non-retail revenue streams during this inflationary period”, it said.

The company will also continue to look for opportunities to increase the number of outlets at key transport nodes.

Old Chang Kee shares closed 4.84 per cent higher at 65 cents on Tuesday. THE BUSINESS TIMES