Foodcourt operator Koufu Group has reported earnings of $9.9 million for the half-year financial period ended 30 June 2021 – up nearly four-times $2.5 million this time last year.
Revenue in the same period was up 18.8% y-o-y $105.7 million.
“We are gradually seeing the fruition of our revenue diversification strategy, which has brought on greater resiliency,” says executive chairman Pang Lim.
For example, Koufu acquired Deli Asia, a traditional snacks and dough products maker which sells in various locations including hawker centres, which provides for another earnings stream from its foodcourt core business.
With its integrated facility poised to be ready, Koufu plans to ramp up the production of foodstuffs such as dim sum and dough products, which will then provide the company with additional revenue opportunities.
Koufu, citing its “strong balance sheet”, hints of additional acquisitions. “Where opportunities arise, the group will look to capitalise on these opportunities with our strong and growing net cash position.”
The company is also upbeat that businesses in general will pick up with the majority of the population already vaccinated.
Koufu plans to pay a dividend of one cent per share, equivalent to a payout ratio of 56%.
As at June 30, it has a total of 52 food courts, 17 coffee shops and a commercial mall. It also runs 74 self-operated F&B stalls, 43 F&B kiosks, six so-called quick-service restaurants, four fullservice restaurants and 57 Delisnacks branded F&B stalls.
Koufu shares closed on Aug 10 at 65 cents, up 1.56% for the day and down 5.8% year to date.
