Kimly reports fiscal year net profit climbed 56 percent amid delivery growth and coffee shops

Kedai Kopi, a Singapore-style coffee shop, with a Tenderbest outlet, located at Haig Road in Singapore’s Geylang neighborhood. Photo taken October 2021Kedai Kopi, a Singapore-style coffee shop, with a Tenderbest outlet, located at Haig Road in Singapore’s Geylang neighborhood. Photo taken October 2021

Singapore-style coffee shop operator Kimly reported Thursday its full fiscal year net profit climbed 55.7 percent on-year to S$39.3 million on growth across all three business divisions, led by the food retail segment.

Revenue for the 12 months ended 30 September increased 13.2 percent on-year to S$238.6 million, Kimly said in a filing to SGX.

The gross profit margin increased 6 percentage points on-year to 32.8 percent, the filing said.

“The strategic locations of the group’s food outlets in the HDB heartlands that span across Singapore provided the group with a competitive advantage to serve an increased footfall arising from the work-from-home and dining-in at the F&B establishments which have been allowed since the lifting of restrictions,” Kimly said.

“Moreover, with the improved support from the central kitchen also helped the group achieve a strong position to capitalize on the popularity in the food delivery segment,” the company added.

Kimly also pointed to its acquisitions of Kovex Holdings, a cleaning services provider, and the Tenderfresh Business, a Halal food retailer, as boosting profitability and diversification.

The food retail division, which contributed the most to revenue growth, came in at S$119.4 million for the year, up S$15 million on-year, mainly on higher contributions from existing food stalls, growth in food delivery sales and the revenue contribution from six food stalls and one confectionary shop opened during the year.

The outlet management division posted revenue of S$112.5 million, up S$9.2 million on-year, mainly on contributions from three new coffee shops opened during the year and improved footfall at the coffee shops. Revenue at the coffee shops was impacted in fiscal 2020 by Singapore’s Circuit Breaker lockdown period, Kimly noted.

The outlet investment business reported revenue more than doubled to S$6.8 million for the year, up from S$3.1 million a year earlier, mainly on the sale of beverage and tobacco products, rental income and cleaning and utilities services from the food outlet properties acquired in the second half of fiscal 2020.

Kimly proposed a final dividend of 0.84 Singapore cent a share, unchanged on-year, plus a special dividend of 0.6 Singapore cent a share, bringing the full year total to 2 Singapore cents a share.

Read more about Kimly’s full year results.