Koufu's Q2 net profit falls 2.6% to S$6.16 million

KOUFU Group's net profit slipped 2.6 per cent to S$6.16 million from the preceding year due to a reduction in finance income, the group said in a Singapore Exchange filing on Wednesday evening.

It was its first results release since the food court and coffee shop operator's initial public offering (IPO) when it began trading on July 18. Earnings per share slipped to 1.27 Singapore cents from 1.31 Singapore cents in the previous year.  For the three months ended June 30, revenue crept up 1.2 per cent to S$54.15 million from the previous year. The gain in revenue was due mostly to more revenue from its outlet and mall management segment from two new food courts in H1 2018 and from two new food courts and coffee shops and one hawker centre which commenced operations in FY2017. But finance income decreased by  83.0 per cent to S$0.1 million in Q2 2018 mainly due to a decrease in interest income from the convertible loan notes which was disposed of in FY2017 as part of the restructuring exercise. For the half year ended June 30, net profit slipped 1.4 per cent to S$12.4 million from the preceding year. Revenue increased 2.1 per cent to S$109.2 million from the preceding year, while earnings per share slipped to 2.56 Singapore cents from 2.59 Singapore cents in the previous year.  Koufu said in its Singapore Exchange announcement that it will continue to look for and secure new premises to increase its number of F&B outlets, and is expanding its "R&B Tea" and "Super Tea" in both Singapore and the overseas market. It expects to remain  profitable in FY2018 barring any unforeseeable circumstances. No dividend was proposed. Koufu shares finished unchanged at S$0.67 on Wednesday before the announcement was made.