UOB Kay Hian analysts Heidi Mo and John Cheong have slightly lowered their target price for Kimly 1D0 from 35 cents to 34 cents following FY2024 earnings that came in below expectations, no thanks to higher operating costs ranging from utilities to labour.

 

Kimly managed to record slightly higher revenue of $319 million for its FY2024, up 2% y-o-y with contributions from new outlets and cleaning contracts. However, earnings was down 7% y-o-y to $32 million.

 

Despite the lower earnings, Kimly plans to pay a total FY2024 dividend of 2 cents, implying a yield of 6.3%. In contrast, Kimly paid a total of 1.68 cents paid for FY2023.

 

Mo and Cheong continue to rate Kimly " hold" given its strong cash-generative ability that can support its dividend policy of paying out no less than 50% of its earnings.

 

They note that despite the competitive industry landscape and mounting costs, Kimly is still expanding its network.

 

In YF2024, it opened three new outlets, 11 stalls and two restaurants. It also opened a new food court in Lucky Plaza, and proposed the acquisition of a coffee shop at Block 204 Serangoon Central. 

 

" These new openings will contribute to better FY2025 earnings," state Mo and Cheong.

 

Even so, they have lowered their FY2025 and FY2026 earnings projections by 2% each, to take into account higher labour costs.

 

Their slightly revised price target of 34 cents is pegged to 12x FY2025 earnings. 

 

" Kimly continues to face persistent pressures in the challenging operating environment with the tight labour market and rising rental and utility costs," the analysts note.

 

Coffeeshop operator Kimly 1D0 has reported higher revenue of $319.4 million for its FY2024 ended Sept, up 1.8% over the year earlier. 

 

However, earnings dropped 6.8% y-o-y to $31.7 million due to higher operations and depreciation costs.

 

Even with the lower earnings, the company maintained a cash balance of $98.5 million as of Sept 30, up from $89.1 million as of Sept 30 2023.

 

Kimly plans to pay a final dividend of one cent per share, which is slightly lower versus 1.12 cents paid this time last year. 

 

Taking into account the interim dividend of one cent already paid, Kimly will be dishing out a total dividend of two cents per share, equivalent to a payout ratio of 75%.

 

The company warns that it is operating in an increasingly challenging business environment fraught with cost pressures from multiple fronts, thereby squeezing its margins.

 

Even so, Kimly has continued with its expansion plans, adding 3 outlets, 11 stalls and 2 restaurants in FY2024, including an air-conditioned food court in Lucky Plaza. It has also acquired a coffeeshop at 204 Serangoon Central.

 

The company has also expanded its halal offerings to tap this growing market.

 

" We aim to optimise resources to achieve sustainable returns for our shareholders," states the company' s directors.

Catalist-listed Kimly 1D0 Limited says the recall of its frozen fish patty will not have any significant impact on the company&rsquo s financial position or operational performance.  

 

The Singapore Food Agency had ordered a recall of Fish Burger Ikan Sultan, manufactured by Kimly subsidiary Tenderfresh Fried & BBQ Chicken, on Sept 26. Egg had been found in the product, which was not stated on its packaging label.

 

Under Singapore&rsquo s food regulations, food products containing ingredients that are known to cause hypersensitivity to consumers with food allergies must be declared on food packaging labels.

 

In a Sept 27 bourse filing, Kimly says it &ldquo sincerely regrets the incident&rdquo and has removed the affected product from all retail shelves.

 

The company adds that the health and safety of its customers are of utmost importance, and it has initiated a &ldquo thorough review&rdquo of its internal quality control processes to further improve and enhance allergen labelling, to ensure full compliance with food regulatory requirements.

 

For 1HFY2024 ended March 31, Kimly posted a slight 0.9% y-o-y dip in earnings to $16 million from $16.2 million. This excluded the $2.5 million gain from the sale of its confectionary business. In comparison, revenue increased by 1.9% y-o-y to $158.5 million.

It has a strata floor area of 358 square metres and 60 years left on the lease

COFFEESHOP operator Kimly : 1D0 0%&rsquo s wholly owned subsidiary, Choh Dee (S204) Food House, has exercised the option to purchase a coffeeshop property at Serangoon from Lee Quan Enterprises for about S$13.2 million.

 

Lee Quan Enterprises is a private company incorporated in Singapore in 2010. It has an issued and paid-up share capital of S$100,000 comprising 100,000 ordinary shares.

 

The property is a two-storey Housing & Development Board (HDB) shophouse unit at Block 204 Serangoon Central. It comprises a coffeeshop on the first level and a three-room HDB flat on the second level.

 

The property has a strata floor area of 358 square metres. It has 60 years left on its lease, which commenced on Oct 1, 1994.

 

The book value of the coffeeshop property is S$14 million, which includes a stamp duty of S$890,000. Based on an independent valuation report commissioned by Kimly, the market value of the property was S$13.7 million as at Jun 7.

 

Kimly said the proposed acquisition is in line with the group&rsquo s strategy to expand its network of food outlets in Singapore, as well as establish new food outlets and food stalls &ldquo as and when suitable strategic locations become available&rdquo .

 

&ldquo The group expects to strengthen its presence in the market by opening more food stalls under its food retail division, which is complemented by its central kitchen,&rdquo it said.

 

It added that it will continue to explore opportunities to acquire and/or operate more strategically-located coffeeshops in mature estates with established footfall.

 

The consideration will be funded by way of cash and using the company&rsquo s internal resources.

 

The proposed acquisition is subject to the coffeeshop property being sold with a condition of tenancy ending on Aug 31 2025, which will be transferred upon completion as well as with the written approval of HDB and other relevant authorities.

 

Choh Dee (S204) or Lee Quan Enterprises has the option to rescind within a seven-day notice period if HDB approval is not obtained by Sep 10, 2024. In this case, all monies paid by Choh Dee (S204) to Lee Quan Enterprises shall be refunded without any interest or deductions, with neither party having any further claims or demand against the other.

 

The acquisition is expected to be completed on or around Dec 10, 2024, or the date four weeks after the HDB unconditional approval has been granted for the sale and purchase of the coffeeshop property, whichever is later.

 

The proposed acquisition is not expected to have any significant impact on the group&rsquo s financial performance for the current financial year.

CGS International analysts have reiterated their " hold" call on Kimly 1D0 1.61% . Given limited prospects for earnings growth given cost pressures, analysts Kenneth Tan and Ong Khang Chuen have trimmed their target price to 34 cents from 36 cents.

 

On May 9, Kimly, which operates a chain of coffeeshops, reported core earnings of $16 million for its 1HFY2024 ended March, down 1% y-o-y. Revenue in the same period was up slightly by 2% y-o-y to $158.5 million

 

The slight miss to the projections of Tan and Ong can be attributed to higher-than-expected labour costs, which increased by 6% y-o-y, causing an EBIT margin decline of 2.1% pts yoy. 

 

Despite the lower earnings, Kimly has declared a higher interim dividend of 1 cent per share, versus 0.56 cent paid for 1HFY2023. At this level, it is a " decent" annualise FY2024 payout of 6.7%. 

 

Ong and Tan point out that Kimly may find it tough to just pass through higher costs.

 

For its outlet management business segment, Kimly is compelled to keep rental hikes to a minimum to maintain healthy tenant occupancy, they figure.

 

Food retail, Kimly' s other main business segment, similarly faces " tougher cost pass-through" as most of them are serving cost-conscious mass market F& B consumers.

 

" We believe such challenges are likely to persist in FY2024 and the coming FY2025 as we see limited scope for Kimly to effectively hike prices further," the analysts say.

 

In 1HFY2024, Kimly opened two new outlets but closed one, for a net increase of one.

 

The analysts, citing Kimly' s management, is aiming to open between three and five new outlets this year.

 

Tan and Ong believe this target is achievable given that Kimly' s net cash remains healthy.

 

" However, we do see risks of potential outlet closures, as excessive rental hikes from private landlords could result in Kimly rationalising its lower-margin outlets, in our view," they suggest.

 

Ong and Tan, having lowered their operating margin assumptions, have derived lower earnings for FY2024 to FY2026 by 2 - 4%, resulting in the new target price of 34 cents, which is still based on the same valuation multiple of 13x FY2025, which is 1 sd below Kimly' s own 5-year mean.

 

Possible upsides to the analysts' current view include a quick recovery in outlet growth, strong demand for mass market fare from increased downtrading behaviour and easing labour cost pressures. 

 

On the other hand, downside risks span from accelerated outlet closures and prolonged margin pressure from the inability to pass on higher opex.

Revenue up 1.9% at S$158.5 million, from S$155.5 million in the year-ago period

 

COFFEESHOP operator Kimly : 1D0 0% posted a 6.1 per cent drop in net profit to S$17.5 million for its first financial half year ended Mar 31, from S$18.7 million the year before.

 

Revenue rose 1.9 per cent to S$158.5 million, from S$155.5 million in the year-ago period, the group said on Thursday (May 9). 

 

Earnings per share stood at 1.41 Singapore cents for the first half, down from 1.5 Singapore cents in the year-ago period. 

 

The board has declared an interim dividend of one Singapore cent per share as a &ldquo token of appreciation&rdquo for the company&rsquo s shareholders. 

 

Adjusted for a S$1.5 million corporate income tax rebate, net profit for H1 would be S$16 million, Kimly said. This is a mere 0.9 per cent lower than the S$16.2 million recorded a year ago, excluding a S$2.5 million gain from the disposal of Kimly&rsquo s confectionary business in December 2022.  

 

Kimly&rsquo s outlet management and food retail divisions contributed to its higher revenue, with three coffeeshops that opened in FY2023 and another two opening in FY2024. 

 

In tandem with the increase in revenue, cost of sales rose by S$1.4 million to S$114.4 million in the first half of the financial year, Kimly said.

 

&ldquo This was largely due to higher employee benefit expenses arising from the salary adjustment across the board, higher utilities charges and cleaning fee expenses but was partially offset by the decrease in food ingredient expenses due to a change in the sales mix.&rdquo

 

Administrative expenses registered an increase of S$0.5 million to S$14.2 million in H1. This was mainly due to higher employee benefit expenses, attributed to an increase in headcount and across-the-board salary adjustments, Kimly said.

 

It added: &ldquo The food and beverage industry in Singapore grapples with numerous challenges amid a competitive landscape and soaring operational expenses. Escalating costs of raw materials and utilities pose a significant hurdle, putting considerable strain on food outlets to offer competitive prices while ensuring sustainable profitability.&rdquo

 

Looking ahead, Kimly sees the halal market as one area it plans to expand towards to capture the growing demand for halal-certified food products. 

 

&ldquo In addition, the group is dedicated to opening more food outlets with the aim of further strengthening and solidifying its market presence and leadership position in the F& B industry.&rdquo

 

UOB Kay Hian has kept its " hold" call and 36 cents target price on coffeeshop chain operator Kimly 1D0 0.00% , following its FY2023 earnings that came in " slightly above"   expectations. However, analysts John Cheong and Heidi Mo, in their Dec 15, warn of margin compression in the current FY2024 because of higher cost pressures.

 

For the year ended Sept, Kimly reported patmi of $36.5 million, up 7.2% y-o-y, on the back of a revenue of $313.9 million, down 1.2% y-o-y, no thanks to the closure of several stalls.

 

Due to higher wage and utilities costs, gross margins fell by 0.5 points y-o-y.

 

Thanks to a strong balance sheet, with net cash of some $71.4 million as at Sept, along with strong operating cashflows, Kimly is maintaining its policy of paying out more than 55-60% of annual earnings, which would imply a decent dividend yield of 5-7% moving forward, the analysts say.

 

For 2HFY2023, Kimly is paying 1.12 cents, bringing the full-year total to 1.68 cents, implying a payout ratio of 57.2%, down from FY2022' s 61.4%. The payout is a " decent" yield of around 5%, state Cheong and Mo.

 

Meanwhile, due to rising costs, including higher wages mandated for certain lower income workers, Cheong and Mo see Kimly facing margin compression this current FY2024. 

 

For the current FY2024 and coming FY2025, they' ve lowered their patmi estimate but raised it for FY2026.

 

CGS-CIMB' s Kenneth Tan and Ong Khang Chuen have kept their " hold" call on coffeeshop operator Kimly 1D0 0.00% Group, following its 2HFY2023 earnings for the period ended Sept.

 

The core net profit of $18 million for the six months ended Sept was above their expectation, thanks to resilient outlet management margins.

 

This brings Kimly' s full-year FY2023 core earnings to $34 million, up 16% y-o-y. A dividend of 1.68 cents has been declared, held steady from the previous year.

 

In FY2023, Kimly closed 4 outlets, but opened three new ones. Tan and Ong, citing the management, expect Kimly to try and open three to five new outlets in the current FY2024.

 

" However, we see the potential for some store closures should rental reversions from private landlords, which make up 56% of leases as at end-FY2023, to be too significant and if Kimly finds it difficult to pass on higher costs to tenants," the analysts state. 

 

In addition, Kimly has flagged it is facing higher labour costs due to the national Progressive Wage Credit Scheme. Some of its suppliers have already adjusted prices upwards ahead of the next 1% GST hike next month.

 

Under a conservative forecast, they expect Kimly to open just one outlet in the current FY2024 and two, net, in the coming FY2025.

 

" Kimly has been raising rental rates and food prices to pass on the cost pressures but remains cautious in managing the pace of price hikes to ensure a healthy level of earnings for its food stall tenants, and that food prices stay affordable given the cost-conscious nature of its customers," say Tan and Ong.

 

However, with a view that margin pressure will persist going forward, the analysts have slightly trimmed their target price from 37 cents to 36 cents.

 

The new target price, pegged to 13x current FY2024 earnings, is a lower multiple from 15x used previously.

Kim Heng&rsquo s chairman and CEO Thomas Tan increased his stake in the company. On Aug 21, Tan acquired 100,000 shares on the open market at 8.6 cents each. This brings his direct stake to 600,000 shares or 0.08%. In addition, Tan has a deemed interest in another 283.3 million, or 40.17%. This brings his total interest in the company to around 284 million or 40.25%.

 

Kim Heng is riding on a recovery in the offshore and marine sector, thanks to higher energy prices which has reignited dormant demand.

 

On Aug 8, the company reported revenue of $44.3 million for its 1HFY2023 ended June, up 26% y-o-y. While the company&rsquo s overall revenue was higher, the various segments turned in a mixed bag. Revenue increased for its marine support services segment. Kim Heng booked higher revenue from trading of vessels and material sales. However, it suffered lower turnover in its equipment rental and vessel chartering segments.

 

However, Kim Heng, for 1HFY2023, enjoyed lower gain on disposal of fixed assets recognised as it did not enjoy reversal of inventories obsolescence recognised in the year earlier 1HFY2022. It had to bear higher finance costs as well. As such, it reported earnings of $1.74 million for 1HFY2023, down 66% versus around $5.1 million recorded for 1HFY2022.

 

In its earnings commentary, Kim Heng says it is &ldquo well positioned&rdquo to extend its strategic footprint into the renewables offshore market as it continues to explore new markets in Asia in addition to Taiwan. The company says that demand for vessels chartering will remain strong and with its recent acquisition of vessels as announced on Feb 24, will enable the company to capitalise revenue growth in chartering segment as well as revenue derived from modification of reactivated vessels for on-selling.

 

In a separate announcement on Aug 15, Kim Heng announced a two-year MOU with Dyna-Mac Holdings to give the latter use of Kim Heng&rsquo s yard facilities in exchange for a fee. The MOU, which will be renewed automatically, gives Dyna-Mac, which specialises in building topside modules for rigs, the flexibility to address spikes in demand. &ldquo This partnership empowers us to engage in more substantial, intricate, and high-value projects, marking a significant step forward in Kim Heng&rsquo s pursuit of sustainable long-term revenue growth in the industry,&rdquo says Tan.

 

&ldquo This mutually advantageous partnership between Dyna-Mac and Kim Heng aligns with the strategic vision of both companies, reflecting our shared commitment to providing enduring value for our respective shareholders,&rdquo says Dyna-Mac&rsquo s executive chairman and CEO Lim Ah Cheng.

 

Income from new outlets

 

Coffeeshop chain operator Kimly has been buying back shares occasionally. The most recent was on Aug 21 when it acquired 100,000 shares on the open market at 32 cents each. This brings the total number of shares bought back under the current mandate to around 2.83 million shares, equivalent to 0.2277% of the total share base. Before this, on Aug 17 and 18, Kimly bought 45,000 shares and 5,000 shares respectively at 32 cents each.

 

On May 11, Kimly reported earnings of $18.7 million for its 1HFY2023 ended March, up 0.7% y-o-y from $18.5 million recorded for 1HFY2022. Revenue in the same period dipped slightly by 0.9% y-o-y to $155.5 million, no thanks to lower contribution from its food retail business, which was down $5.5 million to $91.2 million. Kimly attributes the drop to lower delivery sales following the lifting of pandemic restrictions.

 

In addition, it closed several outlets which contributed to lower food sales. On the other hand, its outlet management segment enjoyed higher revenue thanks to new coffeeshops under its charge as well as lower rental rebates Kimly gave.

 

Although Kimly&rsquo s 1D0 0.00% 1HFY2023 ended in March results were within expectations, analysts Heidi Mo and John Cheong from UOB Kay Hian (UOBKH) say that there is limited upside at current levels in the absence of near-term catalysts, as macroeconomic challenges remain.

 

As a result, Mo and Cheong have kept their &ldquo hold&rdquo call, at a target price of 36 cents, pegged to a 12.5x FY2023 P/E, 0.5 standard deviation (s.d.) below the mean, due to increasing costs from inflationary pressures.

 

Kimly reported a stable revenue of $155.5 million (-0.9% y-o-y), and a positive profit after taxation and minority interests (patmi) growth (+0.7% y-o-y), forming 49.2% and 53.4% of the analysts&rsquo full year-forecasts, which lies largely within their expectations.

 

Gross profit fell 11% y-o-y as a result of higher rental and employee benefit expenses incurred during the period, and the absence of rental reliefs and government grants coupled with rising wages has led to a drop in 1HFY2023 gross margin by 3.1 percentage points (ppt).

 

Meanwhile, Kimly declared a similar interim dividend to 1HFY2022 of 56 cents per share.

 

The analysts note that while Kimly saw weak performance from its food retail segments, the fallout was offset by other segments.

 

&ldquo The fall in revenue was attributable to the 6% y-o-y (-$5.5 million) lower revenue contribution from its food retail division, as food delivery demand normalised, along with the closure of restaurants and stalls,&rdquo say Mo and Cheng.

 

During FY2022 and 1HFY2023, five Tenderfresh Group restaurants and two stalls were closed upon resource rationalisation, while 11 stalls were closed due to poor performance, note the analysts.

 

However, this was partially offset by revenue from the remaining outlet management (+$3.8 million, +6.7% y-o-y), and outlet investment segments (+$0.3 million, +9.1% y-o-y), as a result of five coffeeshop openings in FY2022 and 1HFY2023, higher rental income and increased sales of beverages and tobacco products.

 

Mo and Cheng say that Kimly has maintained its strong balance sheet and net cash position of $53.9 million at the end of 1HFY2023, and with strong operating cash flows from its cash-generative business, a decent dividend yield of 4% to 5% going forward is anticipated.

 

Kimly is expected to see a slower growth in food outlet openings moving forward &mdash they have successfully completed their disposal of seven Rive Gauche Patisserie branches, and closed another 18 restaurants and stalls across FY2022 and 1HFY2023.

 

Despite opening three new outlets in 1HFY2023 and maintaining its guidance of three to five new outlet openings annually, Mo and Cheng foresee fewer food outlets on aggregate, which they say will negatively impact future earnings.

 

As macroeconomic headwinds are set to persist, Kimly will continue to be impacted by rising ingredient and labour costs.

CATALIST-listed coffeeshop operator Kimly posted a 0.7 per cent rise in net profit to S$18.7 million for its first financial half ended Mar 31, from S$18.5 million the year before. 

 

But its revenue for the half year fell 0.9 per cent to S$155.5 million, from S$156.9 million a year earlier. 

 

Kimly, in its regulatory filing on Thursday (May 11), said a 5.7 per cent drop in revenue from its food retail division, which brought in S$91.2 million in the half year, contributed to the revenue drop.

 

The food retail division suffered from lower revenue contribution from existing food stalls or outlets due to a decrease in delivery sales, as demand has started to taper to a new normal since the relaxation of Covid-19 measures, it stated.

 

The division was also affected by the closure of Tenderfresh Group&rsquo s five restaurants and two stalls during the 2022 financial year &ndash actions to rationalise manpower resources by redeploying this same pool of employees to newly-opened food stalls, it added.

 

These were, however, partially offset by higher revenue contribution from its outlet management division and outlet investment business division, the group said.

 

Earnings per share stood at 1.5 Singapore cents for the first half, up from 1.49 cents the previous year.

 

An interim dividend of 0.56 Singapore cents per share was declared for the half to &ldquo express gratitude to shareholders for their unwavering support and continued loyalty&rdquo , Kimly said, adding that the group remains profitable despite a challenging economic environment. The dividend will be paid on or about Jul 14.

 

Kimly said the food and beverage industry will continue to face persistent challenges in the operating environment due to the escalation of input costs, including food ingredients and labour. 

 

&ldquo With the rising inflation, it will further exacerbate input cost, leading to lower margins,&rdquo it added.

 

The group also said the industry faces a manpower shortage, which further compounds these difficulties.

 

The introduction of a progressive wage model for workers in the food services industry adds to the pressure, as employees&rsquo minimum wages have been raised, and they are set to receive annual pay increases over three years, it pointed out.

CGS-CIMB Research analysts Ong Kang Chuen and Kenneth Tan have maintained their &ldquo hold&rdquo call on Kimly Group, but have trimmed their target price from 41 to 39 cents as the group&rsquo s management adopt a more cautious tone.

 

The analysts&rsquo report came after Kimly reported its results for the 2HFY2022 and FY2022 ended Sept 30. For the half-year period, Kimly recorded a net profit of $15 million, which was 12% lower y-o-y and 16% lower h-o-h, in line with the analysts&rsquo expectations but slightly lower than consensus&rsquo expectations.

 

Kimly&rsquo s revenue for its 2HFY2022 rose to $161 million, which stood 39% higher y-o-y and 3% h-o-h. The higher revenue was driven by better outlet management revenue and new contributions from Tenderfresh.

 

Operating profit margin for 2HFY2022 dipped 4.4% percentage points on the back of rising input, like food and utilities, as well as labour costs.

 

However, Kimly&rsquo s management shared that elevated food and utilities prices are expected to weigh on its operating profit margin in FY2023.

 

Other factors that will affect the company are manpower issues, stemming from a shortage of qualified food and beverage (F& B) workers and rising wages.

 

Ong and Tan says that as the company specialises in mass market F& B options, &ldquo we believe the group could benefit from potential downtrading as consumers exercise financial prudency.&rdquo

 

Downtrading is the practice of a consumer switching from expensive brands to cheaper alternatives.

 

Ong and Tan also think that margin pressure could continue into FY2023, given that Kimly also has taken a cautious stance in adjusting food prices due to the cost-conscious nature of customers. Given this, the analysts therefore lower their FY2023 and FY2024 earnings per share (EPS) forecast by 10%-13%.

 

Further to their report, the analysts expect Kimly&rsquo s lower store count to impact its earnings moving forward. Kimly, in the 1HFY2022, announced that it intended to terminate the management agreements of nine coffee shops. Only five coffee shops were terminated as of end-2HFY2022, with four more closures expected in FY2023, Ong and Tan observe.

 

On this, the analysts say they expect Kimly&rsquo s revenue to be impacted by 5% on the outlet management segment from the cessation of the nine coffee shops.

 

In addition, the net closures of seven food stalls in FY2022 and the expected closure of seven more Rive Gauche stores in FY2023 is expected to impact Kimly&rsquo s earnings. Rive Gauche is a French-inspired patisserie that is under the Kimly group. Kimly, on Sept 9, proposed to dispose of its patisserie business to Muginoho Global for a proposed consideration of $2.8 million.

 

That said, Kimly is still targeting to open three to five new coffee shops per year going forward, but the analysts say that &ldquo given the uncertain climate, we now expect no net outlet openings in FY2023, resuming from FY2024 onwards.&rdquo

 

&ldquo Although we see Kimly as a potential beneficiary of downtrading behaviour, we think this will be offset by slowed outlet expansion and rising costs,&rdquo Tan and Ong write.

CATALIST-LISTED Kimly : 1D0 0% posted a 13.4 per cent drop in net profit to S$34 million for the 2022 full year, from S$39.3 million a year earlier, despite a revenue jump. This was mainly due to lower non-taxable government grants, the company said in a Thursday (Nov 24) bourse filing.

 

Earnings per share stood at 2.74 Singapore cents for the year ended Sep 30, down from 3.30 cents previously.

 

The coffeeshop operator said its revenue for 2022 rose 33.1 per cent to S$317.7 million, from S$238.6 million in the previous year, on the back of a S$73.5 million revenue contribution from newly-acquired Tenderfresh Group.

 

Tenderfresh&rsquo s performance gave a boost to Kimly&rsquo s food retail division, which saw year-on-year growth in revenue to S$191.2 million, up from S$119.4 million. However, the contribution was offset by a fall in revenue following the closure of 11 underperforming food stalls, which Kimly said suffered from manpower shortages.

 

Kimly&rsquo s outlet management and outlet investment business divisions also saw revenue growth in 2022. However, cost of sales grew as well.

 

A final dividend of 1.12 Singapore cents per share was proposed, up from 0.84 cent a year earlier. But last year the company also paid a special cash dividend of 0.6 cent a share. The final dividend will be put up for shareholders&rsquo approval at the upcoming annual general meeting. The date payable will be announced later.