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Kitchen Culture narrows 2019 full-year loss to S$3.7m

KITCHEN Culture Holdings saw its 2019 full-year net loss narrow to S$3.7 million from S$4 million last year, though the supplier of high-end kitchen systems continued to face a slump in its residential projects, as well as its distribution and retail segments.

For the 12 months ended June 30, loss per share (LPS) stood at 3.1 Singapore cents, from four cents previously.  

Revenue slipped 26.7 per cent to S$10.5 million, attributable to lower contributions from its residential projects segment by 40.5 per cent, or S$2 million; and from its distribution and retail segment by 19.2 per cent, or S$1.8 million. 

The decline in revenue occurred across the group's operations in Singapore, Malaysia and Hong Kong, but was partially offset by increases in revenue from China, the company said. 

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No dividend has been declared as the group is loss-making for the year, and has accumulated losses of S$13.9 million as at end June this year. 

Commenting on the group's results, Kitchen Culture noted that its retail and distribution business has been slow in the past few years, though it is seeing more orders from its overseas markets, despite the consolidation of its showrooms in Hong Kong.

Based on deposits received from customers, the group's order book for kitchen appliances and kitchen systems stands at S$4.5 million. There are also plans to add new brands of appliances to the group's portfolio of products, the company said. 

In addition, the group's residential projects business in the past three years had also faced "significant challenges", due to the dearth of projects in the premium market, which the group says it has a competitive advantage in. 

That said, due to the high numbers of en-bloc projects in Singapore last year, itsmanagement has noted a surge in new project launches. "The group has managed to capitalise on this, and our order book pipeline (based on letters of award and intent) currently stands at S$19.1 million for five residential projects in Singapore, and S$3.4 million for a residential project in Hong Kong, which are expected to be completed over the next two to three years," the company added. 

Shares in Kitchen Culture last traded at 8.3 Singapore cents on Aug 1, up 2.5 per cent, or 0.2 cent.