SINGAPORE (May 30): Old Chang Kee announced that its FY19 earnings have increased by 14.6% to $4.3 million, compared to $3.8 million in FY18.

This came on the back of a 5.0% increase in revenue to $89.8 million from $85.5 million in the previous year.

Revenue from retail outlets increased by 4.2% y-o-y mainly due to revenue contribution from new outlets and an increase in revenue from existing outlets, partially offset by absence of revenue from closed outlets and outlets temporarily closed for renovations.

As at Mar 31, the group operated a total of 86 outlets in Singapore, as compared to 90 outlets in the same period a year ago.

As cost of sales decreased by 3.0% y-o-y to $32.3 million, FY19 gross profit came in at $57.5 million, 10.1% higher than $52.2 million in FY18.

Share of results of joint venture widened to $301,000 from $76,000 due to its first flagship outlet in London’s Covent Garden.

As at end-March, Old Chang Kee’s cash and cash equivalents stood at $15.4 million.

The group has declared a final dividend of 1.5 cents per share.

Old Chang Kee says its first London flagship has generated positive reviews although it still faces high overheads and manpower costs.

Therefore, the group says that it will continue to fine-tune its product offerings to adapt to the UK market, and to manage its manpower and food costs more effectively, as it becomes more familiar with the UK retail market.

In Singapore, the group expects rental, labour and raw materials to remain high over the next 12 months. It also expects the outlook for the food retail market to remain challenging amid the tight labour market.

In the coming months, the group will continue with its efforts to drive operational efficiencies, and to further leverage on its unique brand positioning to keep ahead of its competitors.

Shares in Old Chang Kee closed 1.90% lower at 78 cents on Thursday.