The slight miss to the projections of Tan and Ong can be attributed to higher-than-expected labour costs, which increased by 6% y-o-y, causing an EBIT margin decline of 2.1% pts yoy.
CGS International analysts have reiterated their "hold" call on Kimly (SGX:1D0
) . Given limited prospects for earnings growth given cost pressures, analysts Kenneth Tan and Ong Khang Chuen have trimmed their target price to 34 cents from 36 cents.
On May 9, Kimly, which operates a chain of coffeeshops, reported core earnings of $16 million for its 1HFY2024 ended March, down 1% y-o-y. Revenue in the same period was up slightly by 2% y-o-y to $158.5 million
