Catalist-listed Kimly posted a 106.2% y-o-y increase in earnings to $21.7 million for the 1HFY2021 ended March, from $10.5 million previously.
The group declared interim dividend of 0.56 cents per ordinary share, double the interim dividend amount that was announced during the 1HFY2020.
The higher earnings outpaced revenue for the period, which grew 14.2% y-o-y to $122.6 million, following higher revenue from existing food stalls and coffee outlets operated, increase in food delivery sales, as well as contributions from new food stalls and coffee outlets.
Revenue for its food retail business grew 18.8% to $59.9 million, while revenue from its outlet management business grew 4.8% y-o-y to $59 million. Revenue from its outlet investment business division also grew to $3.7 million from $0.7 million previously mainly due to sale of beverages and tobacco products, rental income and provision of cleaning and utility services from food outlet properties acquired in the 2HFY2020.
Despite the increased revenue, cost of sales decreased 2.2% y-o-y to $82.4 million.
Gross profit grew 73.5% y-o-y to $40.3 million from $23.3 million previously, driven by the higher revenue as well as government grants and rental relief received. Gross margins improved 11.3 percentage points for the 1HFY2021 to 32.9%
Selling and distribution expenses increased 49% or $1.6 million y-o-y to $4.8 million for the period, due to higher online food delivery fees and more cleaning and packing materials used.
Administrative expenses increased 7.6% y-o-y to $9.5 million due to higher staff and management’s incentive bonuses, which were partially offset by government support.
SEE:Kimly enters into JV to operate and manage HDB coffeeshops in Bukit Batok and Serangoon
Finance costs increased from $0.8 million to $2.3 million mainly due to interest expense from he unwinding of lease liabilities and bank loans.
Despite the increased expenses, pbt grew 104.2% y-o-y to $25.7 million for the period.
The Group registered cash inflow from operating activities of $46.6 million in the 1HFY2021, while cash and cash equivalents stood at $83.7 million as at March 31.
In terms of its outlook for the rest of the year, Kimly expects to grow its revenue and remain profitable for FY2021 “barring unforeseen circumstances”.
While they note footfall to Kimly’s coffeeshops, canteens and food courts have been increasing since the Phase 2 reopening last June, the group is cognisant of risks in relation to the new strains of the virus, which makes the situation in Singapore “difficult to predict”.
To that end, the group continues to seek out acquisition opportunities to further expand market presence in Singapore and secure more long-term direct ownership of food outlets and food stalls. Kimly opened seven food stalls and two confectionery shops last year and two new coffeeshops during the 1H FY2021
Kimly’s directors say that the performance for the 1HFY2021 indicates that the group’s “efforts are bearing fruit” and that it remains resilient during the pandemic.
Shares in Kimly closed at 32 cents on May 5 before trading was halted on the same day.
