Koufu: 3Q21 same-store revenue dropped 20 percent vs pre-Covid levels

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

Singapore-style coffee shop and food court operator Koufu reported Wednesday its total revenue on a same-store basis for July-to-October came in 20 percent below the same period in 2019, which was pre-Covid.

“In the third quarter of 2021, dining-in prohibition as well as the limit on the number of vaccinated diners allowed for dining-in coupled with the high number of positive Covid-19 cases have affected the footfall to our F&B outlets,” Koufu said in a filing to SGX.

“The group expects further impairment losses on trade receivables, property, plant and equipment as well as right-of-use-assets on non-performing outlets to be recognized in the second half of 2021,” the company added.

For the third quarter of 2020, Koufu reported that its total revenue on a same-store basis excluding new outlets was down 20 percent from 2019’s third quarter.

In the outlet and mall management segment, Koufu noted that while most revenue is largely fixed rental income from stall tenants, some is linked to stallholders’ performance at certain outlets, with a variable fee tied to the stall’s gross turnover.

The variable fee income has been impacted by Covid-19 restrictions, Koufu said.

In the food and beverage retail business, Koufu said all of its outlets have resumed service except the Grove quick-serve restaurant at Singapore Management University (SMU) and two R&B Tea kiosks, located at SMU and Far East Square, due to low footfall in those areas.

The company said it is actively seeking new tenants to replace outgoing stallholders and it is closely monitoring occupancy rates. Koufu noted the negative impact has been mitigated by government grants and rental rebates.

Koufu said that as Singapore moves toward re-opening, including launching vaccinated travel lanes (VTLs) to more countries, business conditions are expected to improve. However, operations aren’t expected to reach pre-Covid levels this year as dining restrictions are still in place, Koufu said.

“Notwithstanding the challenges amidst the Covid-19 situation, the group continues to have a strong balance sheet and expects to remain competitive with cautious growth and expansion plans. Where opportunities arise, the group will look to capitalise on these opportunities with its strong cash position,” Koufu said.

Read Koufu’s full statement on the impact of the Covid-19 pandemic on the business.