Food court operator Koufu reported Tuesday its first half net profit surged by nearly four times to S$9.9 million from S$2.5 million in the year-ago period on improved footfall after the year-earlier Circuit Breaker period to stem the spread of the Covid-19 pandemic.
The newly acquired snacks and dough products business also boosted earnings, Koufu said in a filing to SGX.
Revenue for the January-to-June period increased 18.8 percent on-year to S$105.7 million on higher contributions from both the outlet and mall management segment, and the food and beverage retail segment, Koufu said.
The net profit margin increased by 6.6 percentage points on-year to 9.4 percent, the filing said.
“We are encouraged with the strong set of performance despite a difficult operating environment amidst the global pandemic. We are gradually seeing the fruition of our revenue diversification strategy, which has brought on greater resiliency,” Pang Lim, executive chairman and CEO, said in the statement. “The recent acquisition of Deli Asia, a traditional snacks and dough products business, for example, has reaped results.”
The outlet and mall management segment’s revenue grew 2.7 percent on-year to S$49.1 million, for 46.5 percent of group revenue, largely on the increase in rental and related income from higher footfall and food sales, the filing said.
The food and beverage retail segment’s revenue increased 37.4 percent on-year to S$56.6 million, largely on a S$5.9 million contribution from the newly acquired traditional snacks and dough-products business and higher footfall at food outlets, Koufu said.
“With dine-in restrictions due to the heightened measures over several periods since April 2021, the group has witnessed an increase in the takeaway kiosks business, as both in-store takeaway and delivery sales increased,” Koufu said.
Koufu declared a divided of 1 Singapore cent a share, up from 0.5 Singapore cent in the year-ago period.
The company issued an upbeat outlook.
“The Singapore government has announced that, as the country moves towards a larger percentage of the population being fully vaccinated, safe management measures will be gradually relaxed. The group expects business operations to improve further once the restrictions are eased,” Koufu said.
“Barring any unforeseen circumstances, Koufu expects to remain competitive in the next 12 months. With its strong cash position, the group will continue to be on the lookout for accretive opportunities, and explore strategies to reinforce and support its relationships with stakeholders,” the company said.
In Singapore, Koufu has 52 food courts, 17 coffee shops and a commercial mall under the outlet and mall management segment, while the food and beverage retail segment has 74 self-operated food and beverage stalls, 43 food and beverage kiosks, six quick-serve restaurants (QSR), four full-service restaurants and 57 Delisnacks food and beverage stalls as of end-June.
Koufu opened three new food courts at Marina Square, Nanyang Technological University and the Koufu Headquarters in the third quarter, and secured a food court at Outram Community Hospital and an R&B Tea kiosk at Sinopec Petrol Station in Woodlands Ave 5, to be opened this quarter.
In the fourth quarter, Koufu expects to open a Dough Culture kiosk at Jurong East MRT and a Grove QSR at Northshore Plaza.
Koufu is also looking to increase delivery coverage of its Koufu Eat app to more parts of Singapore.
In Macau, Koufu operates three food courts, five food and beverage stalls and two food and beverage kiosks.