Due to higher wage and utilities costs, gross margins fell by 0.5 points y-o-y.
UOB Kay Hian has kept its "hold" call and 36 cents target price on coffeeshop chain operator Kimly (SGX:1D0
) , following its FY2023 earnings that came in "slightly above" expectations. However, analysts John Cheong and Heidi Mo, in their Dec 15, warn of margin compression in the current FY2024 because of higher cost pressures.
For the year ended Sept, Kimly reported patmi of $36.5 million, up 7.2% y-o-y, on the back of a revenue of $313.9 million, down 1.2% y-o-y, no thanks to the closure of several stalls.
