SINGAPORE (Nov 27): Traditional coffeeshop operator Kimly saw its earnings fall 6.0% to $5.4 million for 4QFY2019 ended September, bringing full-year earnings to $20.1 million for FY2019, some 8.4% lower than the $21.9 million recorded a year ago.
This translates to earnings per share (EPS) of 1.74 cents for FY2019, compared to EPS of 1.89 cents in FY2018.
FY2019 revenue grew 3.0% to $208.3 million, mainly due to an increase in the revenue contribution from the Food Retail Division on the back of restaurants and confectionery businesses that were acquired in July last year.
Selling and distribution expenses climbed 30.7% to $5.3 million, mainly due to increase in online food delivery fees, pest control services, as well as cleaning and packaging materials expenses.
Administrative expenses rose 10.1% to $15.4 million, led by higher employee benefits expenses due to an increase in headcount and increased salary per employee, as well as higher depreciation of property, plant and equipment.
As at end-September, cash and cash equivalents stood at $87.2 million.
The group has declared a final dividend of 0.84 cents per share for FY2019, some 23.5% higher than the final dividend of 0.68 cents per share a year ago.
Together with an interim dividend of 0.56 cents per share paid earlier, this brings total dividend for FY2019 of 1.40 cents, represents a payout ratio of 80.2% of net profits.
“We have recalibrated our corporate strategy to leverage on our improved central kitchen and supply chain functions to pursue direct asset ownership,” Kimly’s directors say in a statement accompanying its results announcement.
“With this strategic shift, we believe that Kimly will be better-equipped to expand our footprint in mature and populated estates with established footfalls, growing our market presence and standing as one of the leading F&B operators in Singapore,” they add.
As at 11.30am, shares in Kimly are trading half a cent higher, or up 2.1%, at 24 cents.
