Koufu posts 2Q19 net profit climbed 16 percent after Marina Bay Sands food court reopening

Koufu location at Anchorpoint Mall in Singapore; taken October 2018.Koufu location at Anchorpoint Mall in Singapore; taken October 2018.

Singapore coffee shop operator Koufu reported Wednesday its second quarter net profit increased 16.2 percent on-year to S$7.2 million on stronger contributions from both the outlet and mall management and the food and beverage retail segments.

The newly opened Macau University food court also made its first contribution, Koufu said.

Revenue for the quarter ended 30 June rose 7.3 percent on-year to S$58.1 million, mainly on the reopening of the Marina Bay Sands food court, which reopened in August 2018 after being closed for renovation, Koufu said in a filing to SGX.

The outlet and mall management segment posted an 11.3 percent on-year increase in revenue to S$29.5 million, while the F&B retail segment’s revenue grew 3.6 percent on-year to S$28.6 million for the quarter.

“We have sustained our strong growth momentum despite the highly competitive and challenging F&B industry,” Pang Lim, executive chairman and CEO of Koufu, said in the statement.

“We’ve also made much progress since our IPO last July, notably in overseas markets. Apart from deepening our presence in Macau, we recently announced our maiden entry into the Indonesian market, in line with our plans to capitalize on new growth opportunities by exporting our brands overseas,” Pang said. “Meanwhile, our local businesses continue to thrive – we’ve organically expanded our network of food courts and coffee shops to 65 outlets across both segments, and this is expected to increase further.”

For the first half, Koufu posted net profit of S$14.1 million, up 14.2 percent, on revenue of S$115.9 million, up 6.1 percent on-year.

Koufu proposed an interim dividend of 1 Singapore cent a share, compared with no dividend in the year-ago period.

Koufu’s Singapore portfolio includes 47 food courts, 16 coffee shops, a hawker center and a commercial mall under the outlet and management segment, while the F&B retail segment has 73 self-operated F&B stalls, 20 F&B kiosks, seven quick-service restaurants and two full-service restaurants, the filing said.

It added it had two food courts, four F&B stalls and two F&B kiosks in Macau.

In Singapore, Koufu said it obtained three more leases to expand its food courts and coffee shops, and another lease for a third food court in Macau.

Koufu added it expected its R&B and Supertea outlets would grow to at least 25 in Singapore by end-2019.

In its outlook, Koufu said it expected to remain profitable for the next 12 months.

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