Singapore Kitchen Q1 loss doubles on higher costs, dual listing expenses

SINGAPORE Kitchen Equipment slipped deeper into the red with a first quarter net loss of S$905,000, about double the S$449,000 for the year-ago period, mainly on higher distribution costs and administrative and dual listing expenses.

Loss per share was 0.58 Singapore cents for the quarter ended March 31, 2018, compared to 0.30 Singapore cents for Q1 FY17.

Revenue surged 43.6 per cent to S$6.93 million on higher sales generated from fabrication and distribution for tenders and increase in maintenance and service income. This was partly offset by a 50.7 per cent increase in cost of sales to S$4.92 million due to expansion of sales and production teams and an increase in sales of equipment of lower margin.

First quarter gross profit was S$2.0 million, up 28.7 per cent from a year ago.

Distribution costs were 11.5 per cent higher at S$807,000 on increased staff costs for additional sales personnel, higher sales commissions and depreciation of motor vehicles.

Administrative expenses rose 38.5 per cent to S$1.54 million mainly due to higher staff and related costs.

The kitchen equipment manufacturer and distributor incurred about S$567,000 in expenses for a potential dual primary listing on GEM of The Stock Exchange of Hong Kong.  

It said that the expenses from this potential dual listing may negatively impact its net profit for the next 12 months.