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.
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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.
Kimly shares closed at 32 cents, down 1.54% for the day and down 3.03% year to date.
