SINGAPORE (Aug 7): Coffeeshop operator Kimly reported 3Q19 earnings of $4.7 million, down 6% from $5 million in 3Q18 a year ago.
Revenue for 3Q19 came in at $51.6 million, up 3.5% from $49.9 million in 3Q18, mainly attributable to revenue contributions from the restaurants and confectionery businesses acquired in July 2018, namely Tonkichi and Rive Gauche.
Cost of sales also increased 3.9% to $42.1 million on the back of higher cost contributions from the newly acquired businesses.
As a result, gross profit for 3Q19 also increased by 1.9% to $9.5 million from $9.4 million last year.
Interest income increased 42.4% to $292,000 from $205,000 in 3Q18, in line with higher bank balances placed in short-term deposits during the financial period.
Selling and distribution expenses saw a 38.8% increase to $1.21 million due to the increase in delivery charges, cleaning and packaging materials used, while administrative expenses increased 5.1% to $3.3 million due largely to higher depreciation of property, plant and equipment.
As at June 30, Kimly’s cash and cash equivalents stood at $87.1 million, up from $84 million the previous year.
Looking ahead, Kimly says it has implemented strategies to expand its food offerings, diversify revenue streams through acquisitions, as well as improve internal efficiencies and introduce innovations to reduce costs.
The group will also continue to monitor the challenges in local F&B industry, including issues of affordability at a time of slower economic growth and the reduction of the Foreign Worker Quota which will come into effect over the next two years.
Shares in Kimly closed at 24 cents on Wednesday prior to the release of results.
