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New outlets boost Koufu's Q1 revenue, earnings
HIGHER contributions due to new outlets opened boosted Koufu Group's first-quarter top and bottom line.
The food court and coffee shop operator on Monday posted a 12.3 per cent increase in net profit to S$7 million, on the back of a 4.9 per cent increase in revenue to S$57.8 million.
The rise in revenue was due mostly to higher contribution from its outlet and mall management segment, thanks to two new food courts at The Woodgrove and Buangkok Square which opened in the first quarter, and three new food courts and one coffee shop opened in FY 2018.
There was also overall revenue growth from most of its food courts and coffee shops. The increase was partially offset by the closure of some outlets in FY 2018.
Earnings per share dipped to 1.25 Singapore cents, from 1.28 Singapore cents a year ago, on a larger share base.
Koufu expects to remain profitable in the next 12 months, notwithstanding intense competition in the food and beverage (F&B) industry.
"Increasing rental costs and labour costs as a result of labour shortage are key challenges faced in the F&B industry. However, the group is expected to remain competitive as it continues its journey on improving productivity and will pilot its first traditional coffee making machine in one of its outlets in the upcoming months," it said.
It also looking to expand its market share in food courts and coffee shops as well as its F&B concept stores. It has secured three new food courts - one of which is in Macau - and one coffee shop, all targeted to open progressively from Q2 to Q4 2019.
The group is also in the final stage of negotiating another lease for a food court in Macau, targeted to open in the second half of the year 2019.