Kitchen Culture reports fiscal year net loss widened amid Covid-related impact

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Kitchen Culture reported Friday its fiscal year net loss widened to S$9.87 million from S$4.77 million the previous year as the Covid-19 pandemic impacted operations.

Revenue for the 12 months ended 30 June fell 23.5 percent on-year to S$11.65 million, with declines in contributions from Hong Kong and China, partly offset by increases in Singapore and Malaysia, the company reported in a filing to SGX.

The residential projects segment posted revenue fell 33.3 percent on-year for the fiscal year to S$6.39 million, accounting for around 54.9 percent of total revenue. The segment derived revenue from eight on-going projects, five of which are in Singapore with the remainder in Hong Kong, Kitchen Culture said.

The decline in residential projects was mainly on disruptions of construction i Singapore projects from Covid-19 circuit breaker restrictions, and two projects in Hong Kong reaching completion during the year, the filing said.

The distribution and retail segment posted fiscal-year revenue declined around 6.7 percent on-year to S$5.25 million, accounting for 45.1 percent of group revenue.

“The decrease in revenue for this segment was mainly the result of the Covid-19 situation in which affected all of the group’s operations,” the filing said.

General and administrative expenses jumped 35.4 percent on-year to S$8.2 million for the year, mainly on increased legal and professional fees on the acquisition of 30 percent of OOWAY Technology, placement of new shares and converting debt to share capital, the filing said.

In addition, staff costs rose on a higher headcount in Singapore and higher entertainment expenses, the filing said.

For the six months ended 30 June, Kitchen Culture reported a net loss of S$5.36 million, wider than the year-earlier net loss of S$3.14 million.

Revenue for the fiscal second half fell 13.6 percent on-year to S$6.95 million, the filing said.

Outlook

Kitchen Culture issued a cautious outlook.

“The Covid-19 pandemic has affected the global economy and it has disrupted the group’s economic operations,” the company said.

“The management expect revenue growth to be modest for the next twelve months even in this difficult environment with anticipated cutback in domestic consumption amidst strict safe distancing and safety measures. The group’s distribution and retail business had been slow amidst the challenging retail conditions,” Kitchen Culture said.

But it noted the order book for kitchen appliances and kitchen systems, based on customer deposits, is at S$3.4 million as of end-September.

Read Kitchen Culture’s filing to SGX.