SINGAPORE (May 11): Coffeeshop chain operator Kimly saw a 5.3% y-o-y increase in earnings to $10.5 million for 1HFY2020 ended March, with growth contributed by its five new coffeeshops and eight food stalls opened since November 2019. Revenue climbed 3.1% to $107.4 million in the same period.
Selling and distribution expenses rose 25.5% to $3.2 million from last year’s $2.6 million on higher online food delivery fees and cleaning and packing materials, owing to higher volume of takeaway orders and delivery services due to restricted movement measures.
Kimly also registered an 11% increase in administrative expenses to $8.9 million for 1HFY2020, largely due to higher depreciation of property, plant and equipment and right-of-use assets; an increase in repair and maintenance expense of $0.2 million and an increase in employee benefits expense of $0.1 million.
The company also reported an increase of $1.5 million in finance costs for 1HFY2020 from last year’s $2,000, mainly attributable to interest expense from the unwinding of lease liabilities arising from the adoption of SFRS(I) 16 leases.
While Kimly’s coffeeshops, canteens, and food courts remain open for takeaway and delivery orders only, it has suspended operations at its six Rive Gauche outlets and Cake Central Kitchen facility.
“Besides placing focus on enhancing our food offerings and operations efficiency in the upcoming year, we remain committed to secure more long-term direct ownership of food outlets and food stalls in matured estates which is in line with our asset ownership strategy,” say Kimly’s directors.
“We believe that there are still acquisition opportunities in the local market where we can tap on to further expand our presence in Singapore as well as enhance our profitability,” they add.
As at 31 March 2020, Kimly has $75.0 million in cash and cash equivalents.
The company plans to pay an interim dividend of 0.28 cents per ordinary share for the half-year financial period.
Shares in Kimly traded flat at 21 cents on Monday, prior to the announcement.
