Singaporean F&B company Kimly Group has reported flat revenue and profit for the fiscal first half amid a challenging economic environment in the city-state.
For the six months ended March 31, revenue rose a modest 1.9 per cent to SG$158.5 million (US$117 million). EBITDA rose 1 per cent to $45 million, while net profit attributable to company owners fell 0.9 per cent to $16 million.
By segment, food retail’s revenue edged up by $0.8 million to $92 million, while outlet management’s revenue expanded by $2.2 million to $66.4 million. Revenue of the outlet investment business remained unchanged at $3.2 million.
The increase was attributed to new store openings and the expansion of existing outlets, offset by a decrease in contribution from store closures.
According to the company, the F&B industry in Singapore is facing numerous challenges amid a competitive landscape and soaring operational expenses. Establishments are expected to struggle with the ongoing manpower shortages as well as the escalating costs of raw materials and utilities.
“The group will be proactively implementing measures to optimise resources, ensuring sustainable returns for shareholders and enhancing profitability,” said the company in a management statement.
“Besides that, we will continue to pursue new outlet opportunities to broaden our reach, with a focused emphasis on identifying strategically located coffee shops within well-established neighbourhoods.”
Founded in 1990, Kimly operates and manages 86 food outlets, 172 food stalls, 12 Tonkichi and Tenderfresh restaurants, and four Tenderfresh kiosks across Singapore.
