SINGAPORE (Aug 8): Kimly, one of the largest traditional coffeeshop operators in Singapore, reported a 4.8% dip in 3Q earnings to $5.0 million from a year ago.
Revenue growth of 4.2% to $49.9 million was boosted mainly by higher contributions from both the group’s outlet management and food retail divisions.
The growth from the group’s outlet management division was due to an increase in income from sub-leasing of food stalls in its coffeeshops and foodcourts, as well as from related cleaning and utilities services provided.
Likewise, growth from the food retail division came from an increase in the number of food stalls since July 2017.
In line with revenue growth, the group’s selling and distribution expenses rose 12.2% to $0.9 million due to an increase in cleaning and packaging materials used.
Administrative expenses for 3Q also increased 9.0% to $3.1 million as a result of higher depreciation of property, plant and equipment.
As at June 30, total cash and bank balances stood at $84.0 million.
Vincent Chia, Executive Director of Kimly, says competition in the local food and beverage industry remains keen and fierce and earnings in the short to medium term may fluctuate as the Group invests to achieve the goal of delivering sustainable and steady returns to the shareholders.
Shares in Kimly closed 0.5 cent lower at 34 cents on Wednesday.
