Koufu reports 3Q19 net profit jumped 52 percent on new outlets and organic revenue growth

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

Koufu reported Monday its third quarter net profit climbed 52.3 percent on-year to S$7.1 million on stronger contributions from both the outlet and mall management and the F&B retail segments.

Revenue for the quarter ended 30 September increased 6.6 percent on-year to S$61.4 million, the food court operator said in a filing to SGX.

“This was lifted by a year-on-year increase in number of outlets, with a total of nine newly-opened food courts, F&B stalls and kiosks;
and an overall revenue growth from most of the food courts and coffee shops,” Koufu said. Two new food courts — at 164 Kallang Way and Millenia Walk — opened during the quarter, Koufu said.

The net profit after tax margin for the quarter increased by 3.4 percentage points on-year to 11.5 percent, Koufu said.

“Locally, we’ve continued to step up the expansion of our F&B network across our chain of food courts, coffee shops, F&B concept stores and restaurant business segments,” Pang Lim, Koufu’s chairman and CEO, said in the statement. “We’ve made good strides in our organic expansion, increasing our network of food courts and coffee shops to 65 outlets across both segments. This is expected to increase further
as we continue to prudently seek and secure new strategic locations, with a focus on hospitals, commercial malls, educational institutions and new housing estates.”

Pang added the R&B Tea and Supertea brands are expected to have 29 outlets by the end of the year, with plans to bring the two brands to Malaysia and Indonesia, respectively.

Property rentals and related expenses dropped 57.7 percent on-year to S$11.78 million in the quarter, while depreciation expenses jumped to S$18.73 million, from S$3.16 million in the year-ago quarter on changes to accounting for leases, the filing said.

Administrative expenses fell 51.7 percent on-year to S$1.21 million, due to year-ago IPO transaction costs, Koufu said.

No dividend was declared, compared with a 1 Singapore cent dividend in the year-ago period, the filing said.

For the nine-month period, Koufu reported net profit increased 24.6 percent on-year to S$21.2 million on revenue off S$177.2 million, up 6.2 percent on-year.

Koufu has a total of 49 food courts, 16 coffee shops, a hawker center and a commercial mall under the outlet and mall management segment, while the F&B retail segment includes 74 self-operated F&B stalls, 23 F&B kiosks, seven quick-serve restaurants and four full-service restaurants in Singapore. In Macau, Koufu has two food courts, four F&B stalls and two F&B kiosks.

The full-service restaurants are under the Elemen brand, serving vegetarian food.

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