SINGAPORE (Aug 7): Food court operator Koufu Group posted 2Q19 earnings of $7.2 million, up 16.2% from $6.2 million in the same quarter last year on the back of higher contributions across business segments.

Revenue for the quarter came in at $58.1 million, up 7.3% from $54.1 million the previous year, on higher contributions from both the F&B and outlet and mall management segments.

Segmentally, the outlet and mall management segment saw a $3 million increase to $29.5 million in 2Q19 due to the new stores at University of Macau and 289C Compassvale Crescent, as well as a higher revenue contribution from food court at Marina Bay Sands which was partially closed from April to July 2018.

Revenue from the F&B sector increased by $1 million $28.6 million, due to stalls in newly opened food courts and coffee shops and new kiosks at HarbourFront Centre, Wisma Atria, Rivervale Plaza and Singapore Polytechnic which commenced operations this quarter.

Other income in 2Q19 rose 59.3% to $1.6 million due to an increase in reimbursement of renovation fees charged to the stall operators arising from the renovation of existing and new food courts.

Finance costs increased to $0.98 million from $0.06 million, due to interest expenses on lease liabilities recognised with the adoption of SFRS(I) 16.

As at end June, cash and cash equivalents stood at $93.1 million, compared to $61 million a year ago.

Koufu’s board has proposed an interim, one-tier tax-exempt dividend of 1.0 cent per ordinary share, payable on August 30.

In its outlook statement, Koufu says the group is expected to remain competitive as it continues its productivity efforts and expansion plans despite key industry challenges including rising rental and labour costs as a result of labour shortage.

Executive chairman of Koufu Pang Lim says, “We remain focused on progress, and will continue to leverage on our strong fundamentals, proven business model and portfolio of household brand names to expand our businesses both locally and overseas, setting our sights on Koufu’s long-term sustainable growth.”

Shares in Koufu closed 1.5 cent higher at $0.71 on Wednesday, prior to the release of results.