SINGAPORE (Aug 29): Koufu Group reported 2Q18 earnings of $6.2 million, down by 2.6% from $6.3 million a year ago on higher property-related expenses and depreciation charges.

This brings the group’s earnings for 1H18 to $12.4 million, representing a 1.4% decline from $12.5 million in 1H17 due to similar reasons.

Together, Koufu’s 2Q18 and 1H18 financials make up the group’s maiden results announcement since it commenced trading on 18 July this year.

Revenue for the latest quarter under review grew 1.2% to $54.1 million from $53.5 million a year ago, mainly due to higher revenue contribution from the group’s outlet and mall management segment as two new food courts opened at Fusionopolis and Oasis Terrace.

Also booked as slightly higher revenue contributions from the F&B retail business segment, with two new F&B stalls opened in these two food courts.

In a filing on Wednesday, Koufu says its improved topline comes despite its partial closure of Marina Bay Sands food court between April and July 2018 for refurbishment and upgrading works.

Depreciation charges however grew 31.7% y-o-y to $3 million from $2.3 million previously due to additional property, plant and equipment incurred for the new F&B outlets and stalls.

Meanwhile, property rentals and related expenses grew 7.2% to $25.3 million from $23.5 million in 2Q17 due to the higher number of F&B outlets compared to a year ago.

Going forward, Koufu says it is looking to open an Elemen-branded full-service restaurant at the new Paya Lebar Quarter, as well as a Koufu food court at T-Space in Tampines, in 4Q18.

The group says it remains focused in expanding its market share in food courts and coffee shops, as well as bringing new food options and varieties to consumers through the expansion of its F&B concept stores. It also intends to continue looking for and securing new premises to increase its number of F&B outlets.

Further, Koufu’s executive chairman and CEO, Pang Lim, expects the group to commence construction of its “game-changing” integrated facility given greater financial flexibility brought about by its IPO war chest.

See: Koufu says public offering 17 times subscribed

“[The facility] will not only bring about operational synergies but also open doors to the possibility of exciting collaboration with partners that will bring our business to the next level, enhancing long-term shareholder value,” says Pang.   

Shares Koufu closed flat at 67 cents on Wednesday.