Koufu Q3 net profit surges 52% on rise in revenue contribution

FOOD court and coffeeshop operator Koufu on Monday posted a 52.3 per cent increase in net earnings to S$7.1 million in its third quarter, on the back of a 6.6 per cent rise in revenue to S$61.4 million.

Revenue contribution from the outlet and mall management segment rose 6.2 per cent to S$30.7 million in Q3 2019, thanks to two new food courts at 164 Kallang Way and Millenia Walk that opened in the third quarter, as well as higher overall revenue growth from most of the food courts and coffeeshops.

Revenue from the food & beverage (F&B) retail business segment rose 7.3 per cent to S$30.7 million in the three months ended Sept 30, due to two new F&B stalls in the newly-opened food courts and coffeeshops and five new F&B kiosks at JEMS, Far East Square, VivoCity, White Sands and the Singapore Management University which started operations in Q3. Revenue from most of the food courts and coffeeshops also grew.

The group said it is continuing to increase its F&B network by seeking out new strategic locations, with a focus on hospitals, commercial malls, educational institutions and new housing estates.

Overseas, it is also bringing its R&B Tea and Supertea beverage concepts to both Malaysia and Indonesia, respectively. The first R&B Tea outlet in Malaysia will be opened in Mahkota Parade Melaka in November 2019, while the group continues to secure new locations in Kuala Lumpur and Johor in FY 2020.

As at Sept 30, the group has cash and cash equivalents of S$93.5 million and net cash of S$88.6 million.

For the quarter, earnings per share rose to 1.27 Singapore cents from 0.86 cent a year ago.

Koufu currently has 49 food courts, 16 coffeeshops, a hawker centre and a commercial mall under the outlet and mall management segment, while the F&B retail segment has 74 self-operated F&B stalls, 23 F&B kiosks, seven quick-service restaurants and four full-service restaurants in Singapore.

In Macau, Koufu has two food courts under the outlet & mall management segment, while the F&B retail segment has grown to four F&B stalls and two F&B kiosks. 

For the outlet & mall management segment, Koufu has secured two additional food court leases - one in Singapore and the other in Macau - following the opening of two new food courts at Kallang Way and Millenia Walk during the quarter. The group has also opened two new restaurants in Q3, bringing the total number of Elemen restaurants to four.

In addition, on the F&B retail front, Koufu has opened five new R&B Tea outlets this quarter and secured another 10 new locations which are slated to open progressively from Q4 2019 to FY 2020.

Koufu shares closed one cent higher at S$0.755 on Monday.