Yahoo Finance Kimly reports better revenue for FY2022 but earnings drop on higher costs
Kimly plans to pay a final dividend of 1.12 cents, bringing the FY2022 total to 1.68 cents, representing a payout ratio of 61.4%.
Coffeeshop chain operator Kimly has reported higher revenue of $317.7 million for FY2022 ended Sept 30, up 33.1%, thanks partly to contribution from a newly acquired business, Tenderfresh.
However, earnings in the same period was down 13.4% y-o-y to $34 million as higher costs bite and one-off government grants were not repeated.
“We are delighted to deliver a resilient performance in FY2022 despite the tough business environment,” says the directors of the company.
Going forward, the company warns that as most of its outlets are in the heartlands, business going forward might suffer from a lower footfall than during the peak of the pandemic when working from home was the default.
In addition, the industry faces higher costs including labour and utilities.
“Inflationary pressure has also driven up the raw material costs which were already significantly higher as a result of the supply chain disruptions. The high operating cost pressure is expected to plaque the F&B sector in 2023,” the company says.
The company’s directors also note that consumer sentiment may be dampened by recessionary fears arising from the uncertain global economic outlook.
“Thus, we will keep a close watch on the changing business landscapes and recalibrate our business strategies accordingly,” they add.
Kimly plans to pay a final dividend of 1.12 cents, bringing the FY2022 total to 1.68 cents, representing a payout ratio of 61.4%.
Kimly shares closed Nov 24 at 35 cents, unchanged for the day but down 14.63% year to date.
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