Kimly H1 net profit up by 5.3% to S$10.5m; group doubles down on food stall ownership plans

CATALIST-LISTED coffee shop operator Kimly recorded a rise in net profit up in its first half of the year, even though online food delivery fees and cleaning and packing materials pushed up expenses.

Earnings rose 5.3 per cent year on year to S$10.5 million for the six months to March 31, as revenue grew by 3.1 per cent to S$107.4 million from new coffee shops and food stalls, the group said in unaudited financial statements released on Monday.

Kimly's board said in a statement that "we remain committed to secure more long-term direct ownership of food outlets and food stalls in mature estates".

This is even with a deadly coronavirus pandemic that has temporarily shuttered the group's cake shops and left its coffee shops, canteens and food courts open only for takeaway and delivery.

The board cited a S$55.8 million deal, unveiled in February, to buy a portfolio of eateries in line with a strategy of long-term direct ownership of the properties in which it manages food outlets.

"The group will continue exploring similar opportunities to increase its own portfolio of food outlets, with the view of enhancing long-term shareholder value and to mitigate the uncertainties in the private leasing category, which could be influenced by market competition," it added.

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Earnings per share stood at 0.92 Singapore cent, up from 0.87 Singapore cent before, while net asset value was 7.72 Singapore cents a share, compared with 7.65 Singapore cents as at Sept 30, 2019.

While Kimly said that it expects to stay in the black for the year, the board has halved its proposed interim dividend to 0.28 Singapore cent a share, compared with the year prior.

The books will close on July 3 and the dividend will be paid out by July 15.

Shares ended flat at S$0.21 on Monday, before the results were released.