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Koufu delays opening of new outlets and integrated facility till Q3 amid Covid-19
KOUFU on Friday said the opening of two food courts and two R&B bubble tea kiosks have been "tentatively moved" to the third quarter of this year, from the second quarter.
Koufu's integrated facility is also now expected to be completed in Q3 at the earliest, due to the movement restrictions imposed in Singapore and Malaysia, from where some construction materials are sourced.
Construction of the integrated facility, to comprise a larger central kitchen and corporate headquarters, began in Q4 2018 and was supposed to have been done by the first half of 2020.
These delays compound Koufu's troubles of lower revenue amid Singapore's circuit-breaker period. Despite being able to continue operating under the ambit of being an essential service, some of its food courts have nonetheless been impacted by "significantly lower" footfall, said Koufu.
"The group’s revenue in Q2 was impacted more than in Q1 since the circuit-breaker measures were implemented in full from April," Koufu added.
The group has temporarily suspended the operations of 10 food courts, three quick-service restaurants and two full-service restaurants, where there is low footfall, to reduce operating costs.
Koufu’s total revenue (excluding that from new outlets) recorded from January to April fell 15 per cent year on year.
Its operating profit for the first half of 2020 is expected to be "significantly lower" year on year as well, due to the impact of the virus outbreak. New outlets opened in FY2019 are still in their "stabilisation phases" and have yet to contribute positively.
Koufu also operates in Macau, which has slowly opened up its borders. The group said business operations there remain at a "reduced level". Business there is expected to improve only when Macau opens its borders to visitors from Greater China, on which Macau is dependent.
Shares of Koufu, trading cum-dividend, closed down 1.56 per cent at S$0.63 on Friday before the announcement.