Kimly full-year profit up 55.7% to S$39.3m; proposes 0.84 cents final dividend, 0.6 cents special dividend

COFFEE shop and food court operator Kimly reported a 55.7 per cent growth in net profit to S$39.3 million for the full year ended Sep 30, 2021.

This comes on the back of an increase in revenue across the board, up 13.2 per cent to S$238.6 million, the group said in a bourse filing on Thursday (Nov 25).

The group has proposed a final dividend of 0.84 Singapore cents per share and a special dividend of 0.6 Singapore cents per share.

Taking into consideration the 0.56 Singapore cents per share interim dividend paid in July 2021, the total dividend declared for FY2021 stands at 2 Singapore cents per share.

Kimly's food retail division contributed the most to the group's revenue growth, logging a S$15 million increase to S$119.4 million for the year. This was due mainly to higher revenue contributions from existing stalls, growth in food delivery sales, and contributions from 6 new food stalls and 1 new confectionary shop.

Its outlet management division saw revenue go up S$9.2 million to S$112.5 million due to contributions from 3 new coffee shops and overall improvement in footfall.

Revenue from its outlet investment business division more than doubled from S$3.1 million to S$6.8 million, mainly due to the sale of beverages and tobacco products, rental income, and cleaning and utilities services provided to food outlet properties acquired in the second half of FY2020.

Cost of sales grew at a much slower pace than revenue mainly due to government grants and rental rebates, the group said. Cost of sales as a percentage of revenue fell from 73.2 per cent in FY2020 to 67.2 per cent in FY2021.

Selling and distribution expenses went up S$2.6 million to S$10.2 million due to higher online food delivery fees and an increase in packaging materials used. The group also registered a S$4.1 million increase in administration expenses, primarily due to higher spending on employee benefits.

Kimly's directors said the group is committed to expanding its network of food outlets across Singapore through joint ventures and acquisitions. They cited the recent acquisition of a 75 per cent stake in Tenderfresh as a demonstration of this strategy.

"This strategy is expected to further strengthen our revenue base for future growth and enhance our shareholders' value. While there is still uncertainty from the ongoing pandemic, we will continue to monitor the situation closely and prepare ourselves in a strong way for the post-pandemic environment," they said in a press release.

The directors also noted growing demand from the food delivery business.

"Through the integration of new technologies for the upgrade of our central kitchen, we are confident to improve the productivity and reduce the reliance on manpower. We will continue to strengthen our income base by enhancing our food offerings and operational efficiency for greater customer and shareholder value," they said.

Kimly shares ended Thursday up 1.25 per cent or 0.5 Singapore cents at S$0.405.