SINGAPORE (May 8): Coffeeshop operator Kimly saw its earnings grow 20.2% to $5.5 million for the 2Q ended March, from $4.5 million a year ago.
2Q18 revenue climbed 3.8% to $49.2 million, from $47.4 million a year ago.
This was mainly attributable to higher revenue contributions from its Food Retail and Outlet Management divisions, due to an increase in the number of food stalls and an increase in income from sub-leasing of coffee shops and food courts as well as related cleaning and utilities services provided.
Gross profit dipped 3.3% to $9.6 million, from $9.9 million a year ago, as cost of sales outpaced the increase in revenue. Cost of sales rose 5.7% to $39.6 million on the back of increases in employee benefits expense and operating lease expense due to new coffeeshops which commenced operations since April last year.
Other operating income nearly doubled to $1.2 million in 2Q18, from $0.6 million a year ago, mainly due to grants received from Wage Credit Scheme and Special Employment Credit.
Administrative expenses fell 10.2% to $3.9 million, from $4.3 million a year ago, mainly due to the absence of one-off listing expenses.
As at end March, cash and cash equivalents stood at $85.5 million.
Kimly has declared an interim cash dividend of 0.28 cents per share, payable on May 30, 2018.
Looking ahead, the group says it has embraced new technology and initiatives to stay ahead of competition and keep pace with changing consumer trends.
The group adds that it plans to gradually implement cashless payment systems to its food outlets island-wide to improve operational efficiency.
“As part of its expansion plan, the group is also exploring potential accretive acquisition opportunities to enhance its earnings,” says executive director Vincent Chia.
Shares of Kimly closed flat at 34.5 cents on Tuesday.
