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Kimly 1H2021 Result
Rev S$122m (vs 107m)
GP S$ 40m (vs 23m)
NP S$ 21m (vs 10m)
Div 0.56cts (vs 0.28)
The Food and Beverages ("F&B") sector is on a path of steady recovery, following the serious and adverse impacts on
economic growth resulting from the COVID-19 pandemic last year. But the recovery is on a cautious note as the industry is
still expected to continue facing challenges arising from the competitive landscape. The reduction of the Foreign Worker
Quota (announced in the Budget 2019) coupled with increasing rental and raw material costs will pose mounting pressure
to the local F&B players. However, governmental support in the form of Jobs Support Schemes (“JSS”) announced during
this year’s Budget might provide the industry with a slight boost.
The Group will continue to leverage on technology and other innovative features in both its Central Kitchen capabilities
and at the operational front. These will boost productivity and reduce the reliance on labour in view of the tightening
Foreign Worker Quota and travel restrictions. In addition, the Group will stay focused in carrying out its four-pronged
growth strategy to overcome these challenges. These are: (1) expanding footprint and diversifying product offering; (2)
driving innovation and streamlining outlet operations; (3) synergising central kitchen operations; and (4) supporting
entrepreneurship and grooming the next generation of business owners to help increase tenant retention while hoping to
grow the local food culture.
The distribution and rolling out of vaccines at the start of the year is a positive sign towards economic recovery, with
many returning to the norm of dining out. Since Phase 2 of the economy’s reopening last June, footfall to the Group’s
coffeeshops, canteens and food courts has been steadily increasing following the slow return to pre-pandemic normalcy.
The Group has also been actively seeking out acquisition opportunities that are synergistic to its core business in order to
grow revenue and enhance profitability. The Group and Tenderfresh Fried & BBQ Chicken Pte Ltd (“Tenderfresh”)’s jointlyopened halal themed coffeeshop, KEDAI KOPI, has undergone enhancement work and was opened for business in
December 2020. KEDAI KOPI has been performing well since its opening. The Group is currently operating 83 food outlets,
representing an increase of 29.7% since its initial public offering on the Catalist of the SGX-ST in 2017.
As new strains of the virus have emerged in some parts of Asia this year, the Group will take precautions in ensuring the
safety of its staff and viability of operations while remaining mindful of the potential challenges that may arise again
should a second wave occur. Previous negative impacts were mitigated to an extent by grants from the government,
rental relief and property tax rebates from landlords. Nonetheless, the Group has adapted to these hurdles and is
constantly looking to innovate to stay ahead in this volatile economy by deploying new technology to leverage on
emerging trends. As it is difficult to predict how long the situation in Singapore would take to normalise given the global
lingering uncertainties, the Group will continue seeking for opportunities available in the market to grow its revenue
streams while monitoring the situation cautiously.
On 1 April 2021, the Group acquired 60% of the issued and paid-up share capital of a general cleaning solutions provider, Klovex Holdings Pte. Ltd.. With the pandemic elevating the importance of hygiene and cleanliness and
spurring greater demand for cleaners and cleaning services, this presented a great opportunity for the Group to
expand into the cleaning services industry to further increase its revenue streams. This acquisition allows the Group to
ride on the growing trend for cleaning services, potentially enhancing the profitability of the Group. The Group will
also be provided with an enhanced set of cleaning capabilities, where it will be able to deliver elevated standards of
cleanliness and hygiene at its operating premises for its customers.
The Group has entered into joint venture agreements with third parties to operate and manage the respective short-term coffeeshop leases at Block 134 Lorong Ah Soo, #01-454 Singapore 530134, Block 233 Bukit Batok East Avenue 5
#01-53 Singapore 650233 and Block 153A Serangoon North Avenue 1 #01-462 Singapore 551153. The Group will hold
49% stake in each of the joint ventures while the joint venture partners will hold 51% in the respective joint venture.
The joint ventures are in line with the Group’s strategy to expand its network of food outlets locally and to establish
new outlets and stalls as and when strategic locations become available. This will help the Group diversify and expand
its revenue stream and mitigate uncertainties in the private leasing category.
Moving ahead, the Group will continue exploring opportunities to increase its own portfolio of food outlets in mature
estates with established footfalls with the view of enhancing long-term shareholder value.
Barring unforeseen circumstances, the Group expects to continue growing its revenue base and remain profitable for FY2021.
https://links.sgx.com/FileOpen/Kimly_1HF...eID=665584
Stay home and stay safe, everyone.
Rev S$122m (vs 107m)
GP S$ 40m (vs 23m)
NP S$ 21m (vs 10m)
Div 0.56cts (vs 0.28)
The Food and Beverages ("F&B") sector is on a path of steady recovery, following the serious and adverse impacts on
economic growth resulting from the COVID-19 pandemic last year. But the recovery is on a cautious note as the industry is
still expected to continue facing challenges arising from the competitive landscape. The reduction of the Foreign Worker
Quota (announced in the Budget 2019) coupled with increasing rental and raw material costs will pose mounting pressure
to the local F&B players. However, governmental support in the form of Jobs Support Schemes (“JSS”) announced during
this year’s Budget might provide the industry with a slight boost.
The Group will continue to leverage on technology and other innovative features in both its Central Kitchen capabilities
and at the operational front. These will boost productivity and reduce the reliance on labour in view of the tightening
Foreign Worker Quota and travel restrictions. In addition, the Group will stay focused in carrying out its four-pronged
growth strategy to overcome these challenges. These are: (1) expanding footprint and diversifying product offering; (2)
driving innovation and streamlining outlet operations; (3) synergising central kitchen operations; and (4) supporting
entrepreneurship and grooming the next generation of business owners to help increase tenant retention while hoping to
grow the local food culture.
The distribution and rolling out of vaccines at the start of the year is a positive sign towards economic recovery, with
many returning to the norm of dining out. Since Phase 2 of the economy’s reopening last June, footfall to the Group’s
coffeeshops, canteens and food courts has been steadily increasing following the slow return to pre-pandemic normalcy.
The Group has also been actively seeking out acquisition opportunities that are synergistic to its core business in order to
grow revenue and enhance profitability. The Group and Tenderfresh Fried & BBQ Chicken Pte Ltd (“Tenderfresh”)’s jointlyopened halal themed coffeeshop, KEDAI KOPI, has undergone enhancement work and was opened for business in
December 2020. KEDAI KOPI has been performing well since its opening. The Group is currently operating 83 food outlets,
representing an increase of 29.7% since its initial public offering on the Catalist of the SGX-ST in 2017.
As new strains of the virus have emerged in some parts of Asia this year, the Group will take precautions in ensuring the
safety of its staff and viability of operations while remaining mindful of the potential challenges that may arise again
should a second wave occur. Previous negative impacts were mitigated to an extent by grants from the government,
rental relief and property tax rebates from landlords. Nonetheless, the Group has adapted to these hurdles and is
constantly looking to innovate to stay ahead in this volatile economy by deploying new technology to leverage on
emerging trends. As it is difficult to predict how long the situation in Singapore would take to normalise given the global
lingering uncertainties, the Group will continue seeking for opportunities available in the market to grow its revenue
streams while monitoring the situation cautiously.
On 1 April 2021, the Group acquired 60% of the issued and paid-up share capital of a general cleaning solutions provider, Klovex Holdings Pte. Ltd.. With the pandemic elevating the importance of hygiene and cleanliness and
spurring greater demand for cleaners and cleaning services, this presented a great opportunity for the Group to
expand into the cleaning services industry to further increase its revenue streams. This acquisition allows the Group to
ride on the growing trend for cleaning services, potentially enhancing the profitability of the Group. The Group will
also be provided with an enhanced set of cleaning capabilities, where it will be able to deliver elevated standards of
cleanliness and hygiene at its operating premises for its customers.
The Group has entered into joint venture agreements with third parties to operate and manage the respective short-term coffeeshop leases at Block 134 Lorong Ah Soo, #01-454 Singapore 530134, Block 233 Bukit Batok East Avenue 5
#01-53 Singapore 650233 and Block 153A Serangoon North Avenue 1 #01-462 Singapore 551153. The Group will hold
49% stake in each of the joint ventures while the joint venture partners will hold 51% in the respective joint venture.
The joint ventures are in line with the Group’s strategy to expand its network of food outlets locally and to establish
new outlets and stalls as and when strategic locations become available. This will help the Group diversify and expand
its revenue stream and mitigate uncertainties in the private leasing category.
Moving ahead, the Group will continue exploring opportunities to increase its own portfolio of food outlets in mature
estates with established footfalls with the view of enhancing long-term shareholder value.
Barring unforeseen circumstances, the Group expects to continue growing its revenue base and remain profitable for FY2021.
https://links.sgx.com/FileOpen/Kimly_1HF...eID=665584
Stay home and stay safe, everyone.