Iconic Singapore curry puff maker Old Chang Kee reported Thursday its fiscal year profit after tax increased 14.6 percent on-year to S$4.34 million on contributions from new outlets.
Revenue for the fiscal year ended 31 March increased 5 percent on-year to S$89.79 million, the curry puff purveyor said in a filing to SGX.
Retail outlets’ revenue contribution increased by 4.2 percent on-year, mainly on new outlets and increased contributions from existing outlets, partly offset by outlets which were closed or temporarily closed for renovation, Old Chang Kee said.
As of end-March, the company had 86 outlets in Singapore, down from 90 at end-March 2018, the filing said.
Revenue from other services, such as export sales, events, delivery and catering services rose 60.7 percent on-year to S$2.1 million, mainly on more events, delivery and export sales, the filing said.
Cost of sales fell 3.0 percent on-year to S$32.25 million for the fiscal year, mainly on better food-cost management, partly offset by increased factory-related depreciation and utility expenses, the filing said.
The gross profit margin for the full year rose to 64.1 percent from 61.1 percent a year earlier, mainly on improved worker efficiency and food-cost management, Old Chang Kee said.
For the fiscal fourth quarter, Old Chang Kee reported profit after tax tumbled 53.6 percent on-year to S$523,000, while revenue fell 1.4 percent on-year to S$20.96 million.
Old Chang Kee declared a final dividend of 1.5 Singapore cents, unchanged on-year.
In its outlook, the company said Singapore’s food retail market remained challenging amid a tight labor market.
For the U.K., it said its Covent Garden, London, outlet has generated “many positive reviews,” but it faced challenges from high overhead and worker costs.
“The group will continue to fine-tune its product offerings to adapt to the U.K. market, and to manage its manpower and food costs more effectively, as it becomes more familiar with the U.K. retail market. If and when opportunities arise, the group will look to further expand its retail presence in the U.K.,” the company said.
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