Old Chang Kee profit after tax falls 22% in 1HFY2023 amid higher revenue and costs

Old Chang Kee has declared an interim dividend of 1.0 cent per share.

Old Chang Kee has reported 13.3% y-o-y higher revenue of $43.66 million for 1HFY2023 ended September. Cost of sales, too, grew 10.3% y-o-y to $15.16 million.

Profit after tax, however, fell 22.0% y-o-y to $2.62 million.

The Group’s gross profit margin increased by 1.0% y-o-y to 65.3% in 1HFY2023, mainly due to lower production staff salaries as a percentage of revenue due to improved cost management, and improved food cost margin as a result of retail price adjustment, offset by higher utility expenses during the period, says Old Chang Kee.

At $573,000, other income decreased by approximately $3.4 million y-o-y in 1HFY2023 due to absence of Job Support Scheme grants, and lower gain from disposal of assets, lower government grants mainly due to the absence of property tax rebate and rental rebate for the current period.

As at Sept 30, the Group operated a total of 80 outlets in Singapore, as compared to 89 outlets one year earlier. “The Group’s number of outlets has reduced partly due to infrastructural developments at various locations, necessitating the closure of these outlets,” says Old Chang Kee.

Earnings per share for the period stood at 2.16 cents, down from 2.77 one year prior.

Old Chang Kee has declared an interim dividend of 1.0 cent per share, payable on Dec 19. This is unchanged from the interim dividend paid this time last year.

As at Sept 30, the Group had a positive net working capital of approximately $14.6 million, compared to approximately $11.6 million as at March 31. “The Board believes that the Group’s cash balance is sufficient to buffer against the impact of Covid-19 for at least the next 12 months.”

Shares in Old Chang Kee closed flat at 61 cents on Nov 14.

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