SINGAPORE (May 7): Kimly, the owner and operator of coffeeshops, reported 2Q19 earnings fell 13.2% to $4.7 million from $5.4 million in 2Q18.
This brings 1H19 earnings to $10 million, 10.7% lower than $11.2 million in 1H18.
Revenue for the quarter came in 4.7% higher at $51.5 million from $49.2 million a year ago, mainly due to the revenue contribution from the restaurants and confectionery businesses that were acquired in July 2018, namely Tonkichi and Rive Gauche.
Cost of sales increased 5.4% which resulted in 1.8% higher 2Q19 gross profit of $9.8 million.
Selling and distribution expenses increased by 55.8% y-o-y to $1.2 million, while administrative expenses were 12.4% higher y-o-y at $4.3 million.
As at end March, the group’s cash and cash equivalents stood at $86.5 million.
The group has declared an interim dividend of 0.56 cent per share, double that of the dividend declared in the same period last year. This represents a payout ratio of 64.6% of the net profits of 1H19, compared to 28.9% in 1H18.
Kimly has completed upgrading its three central kitchens in 2Q19. Following this, the group says it will continue to direct its efforts in using technology to further strengthen the synergy between its outlets and central kitchens.
It will also seek to improve productivity while improving working conditions at the individual food outlets/stalls. The group will also be relocating the Rive Gauche central kitchen to its headquarters in Woodlands.
Currently, the group is also in the midst of developing its own brand of iced coffee and tea to cater to the growing preference for healthier F&B options including lower sugar content.
The products are expected to be ready for launch in 3Q19.
Shares in Kimly closed at 24 cents on Tuesday.
