Singapore coffee chain Kimly boosts profit, despite Covid-19

Singaporean traditional coffee shop operator Kimly has recorded a 5.3-per-cent year-on-year boost in half-year profit to SG$10.5 million (US$7.4 million).

The result was achieved on a more modest 1-per-cent increase in sales to $107.4 million ($75.74 million) in the half-year ended March 31.

The improved revenue was largely due to the brand’s five new coffee shops and eight food stalls opened since November.

While the Covid-19 pandemic seriously and adversely impacted economic growth prospects in Singapore, Kimly’s coffee shops, canteens and food courts remain open for takeaway and delivery services throughout. Since the nation’s circuit breaker was introduced on April 7 footfall has fallen at these locations, the company said.

“In line with the further tightening of circuit breaker measures recently, the group has suspended operations at its six Rive Gauche outlets and Cake Central Kitchen facility but the group does not expect the suspension to have any material impact on the group’s revenue.”

The Kimly board said that besides placing focus on enhancing food offerings and operational efficiency in the upcoming year, “we remain committed to secure more long-term direct ownership of food outlets and food stalls in matured estates which is in line with our asset ownership strategy”.

“We believe that there are still acquisition opportunities in the local market where we can tap on to further expand our presence in Singapore as well as enhance our profitability.”