Koufu focuses on homeground expansion amid Covid-19 pressures

Earlier plans to deepen bubble tea footprint and offer meatless dining concept in the region are on hold

Published Tue, Jul 21, 2020 · 09:50 PM

Singapore

FOOD and beverage (F&B) company Koufu Group plans to focus its energy on homeground expansion this year, now that its planned overseas expansion will have to take a backseat amid the Covid-19 situation.

This year has not been easy for the company. Sales at its Singapore restaurants, food courts, and coffee shops fell by "a substantial amount" during the "circuit breaker", after it temporarily suspended the operations of 10 food courts and five restaurants to cut operating costs.

According to Bloomberg data, the consensus estimate for its FY2020 revenue is S$201 million - 16 per cent lower year-on-year. Net profit is expected to decline 31 per cent to S$19.2 million.

The stock, which has recovered 24 per cent from its trough in April, is down 12 per cent for the year, finishing at S$0.68 on Tuesday. That still compares favourably with the Straits Times Index, which is down 18 per cent year to date. The stock trades at 13.7 times its historical earnings and has an indicated dividend yie…