SINGAPORE (May 6): Food court operator Koufu Group has announced 12.3% higher 1Q19 earnings of $7 million from $6.2 million a year ago, due to higher contributions from across its business segments.
Revenue for the quarter grew 4.9% to $57.8 million from $55.1 million in 1Q18 as Koufu’s business segments, namely outlet & mall management as well as F&B retail, both registered higher contributions over the period under review.
The outlet & mall management segment, which accounts for 51.4% of total revenue, rose 9.2% on-year to $29.7 million, whereas F&B retail reported a 0.7% growth in revenue contributions to $28.1 million.
Koufu says the improved topline performance from both segments was due to new openings and overall robust revenue growth from all outlets, which outweighed the absence of income due to store closures during the quarter.
Other income rose by $0.3 million or 25% to $1.8 million over the quarter due to higher reimbursement of renovation fees charged to the stall operators, which arose from the renovation of existing and new food courts.
Finance costs grew by $0.9 million to $1 million mainly due to interest expenses on lease liabilities recognised with the SFRS(I) 16 accounting standard.
As at end-March, cash and cash equivalents stood at $66.6 million compared to $61 million a year ago.
In its outlook, Koufu anticipates continued competition and challenges in the local F&B industry due increasing rental and labour costs, but says it expects to remain competitive as it continues its journey to improve productivity.
“We remain firmly focused on the expansion of our market share in food courts and coffee shops, growing our F&B concept stores, and bringing new food options and varieties to consumers both locally and in the region, leveraging on our distinct portfolio of brands,” says Pang Lim, executive chairman and CEO of the group.
Shares in Koufu closed 2 cents lower at 77 cents on Monday.
