Kimly sees H1 profit more than double to S$21.7m, declares 0.56-cent interim dividend

COFFEE shop operator Kimly on Monday posted net profit of S$21.7 million for the first six months of the year ended March, more than doubling from S$10.5 million in H1 FY2020 net profit on the back of higher revenue and improved gross margin.

Group revenue for the half-year period rose 14.2 per cent to S$122.6 million from S$107.4 million the previous year, as revenue contributions grew year on year across all business divisions of the group.

The bulk of group revenue growth for H1 came mainly from the food retail division, which saw higher contributions from existing food stalls and increased food delivery sales, as well as from new food stalls and confectionery shops opened over FY2020.

Cost of sales notably declined 2.2 per cent to S$82.4 million from S$84.2 million in H1 FY2020, largely due to government grants and rental relief received.

As such, the group's gross profit increased 73.5 per cent on-year to S$40.3 million, with gross profit margin rising 32.9 per cent from 21.6 per cent in the same period last year.

Earnings per share was 1.83 Singapore cents, up from 0.92 cent a year ago.

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Kimly has declared an interim dividend of 0.56 cent, double the 0.28 cent interim dividend announced during H1 FY2020.

Noting that the F&B (food and beverage) sector is "on a path of steady recovery", Kimly in its announcement said footfall to its coffee shops, canteens and food courts has been "steadily increasing following the slow return to pre-pandemic normalcy".

The group said that it will nonetheless continue taking precautions in ensuring the safety of its staff and viability of operations, as new strains of the virus have emerged in parts of Asia this year.

"As it is difficult to predict how long the situation in Singapore would take to normalise given the global lingering uncertainties, the group will continue seeking for opportunities available in the market to grow its revenue streams while monitoring the situation cautiously," it added.

Shares of Kimly last traded at 32 cents before a trading halt was called on May 5.