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Old Chang Kee posts profit of $3.79 mil, retail sales make up for loss of catering in 1H22

Jovi Ho
Jovi Ho11/11/2021 08:48 PM GMT+08  • 3 min read
Old Chang Kee posts profit of $3.79 mil, retail sales make up for loss of catering in 1H22
The group has declared an interim dividend of 1.0 Singapore cent per ordinary share.
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Old Chang Kee reported revenue of $38.52 million for 1HFY2022 ended Sept 30, up $341,000 or 0.9% y-o-y.

This was mainly due to higher delivery and retail sales, partially offset by a decrease from catering sales, says the group on Nov 11.

Profit before tax fell 45.4% y-o-y to $3.79 million for the period. The group’s gross profit margin decreased by 1.7% to 64.3% in 1H2022, mainly due to absence of economies of scale savings from the large-scale catering of packed meals to foreign workers dormitories.

Old Chang Kee reported profit of $2.6 million for the 2HFY2021 ended March.

See: Old Chang Kee reverses from losses to report profit of $2.6 mil for 2H21

Earnings per share stood at 2.77 cents, down from 5.05 cents per share this time last year.

See also: CDL reports high occupancies for Singapore office, recovery in retail and hotel portfolios

The group has declared an interim dividend of 1.0 Singapore cent per ordinary share for the period, with a record date of Dec 3.

As at September 30, the group operated a total of 89 outlets in Singapore, one more from a year ago.

Revenue from retail outlets increased by approximately $7.8 million, or 28.4% y-o-y, mainly due to incremental revenue from new outlets and increase in revenue from existing outlets.

See also: Keong Hong's net loss widens

The increase in retail revenue was partially offset by a decrease in revenue from closed outlets.

Revenue from other services, such as delivery and catering services, decreased by approximately $7.4 million y-o-y mainly due to absence of packed meals catering to foreign workers dormitories, partially offset by higher delivery revenue during the current period.

Other income decreased by approximately $511,000 y-o-y to $3.93 million due to lower government grants, mainly the absence of foreign worker levy rebate of about $420,000 and lower property tax rebates offset by higher Job Support Scheme rebates, and additional job growth support scheme income for the current period.

Other expenses increased by $207,000 y-o-y to $716,000 mainly due to the impairment of amount due from the group’s joint venture in the UK of approximately $26,000 and Malaysian associate of approximately $51,000.

For more stories about where the money flows, click here for our Capital section

There was also a higher exchange loss of approximately $178,000 mainly due to exchange rate loss on foreign currency denominated payables to related companies within the group.

The group’s current assets increased by approximately $30,000 to $32.16 million. The decrease in the group’s current and non-current liabilities was mainly due to

As at Sept 30, the group had a positive net working capital of approximately $9.6 million compared to net working capital of approximately $7.5 million as at March 31.

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