SINGAPORE (Feb 26): Koufu Group, the operator and manager of food courts and coffeeshops, reported a 3.7% rise in 4Q18 earnings to $7.5 million from a year ago.
This brings FY18 earnings to $24.5 million, 8.8% lower than a year ago, although full-year revenue came in at a record $223.8 million on stronger revenue contributions from both outlet & mall management and F&B retail segments with new F&B outlet openings.
In 4Q18, revenue increased 5.3% to $57.0 million in 4Q18 from $54.2 million in 4Q17.
Revenue contribution from the outlet and mall management segment increased by $3.3 million to $29.6 million, thanks to three new food courts and one coffeeshop opened in FY18 at Fusionopolis, Oasis Terrace, Sengkang General Hospital and Tampines T-Space.
The increase was partially offset by the closure of three food courts at Star Vista; Marina Bay Link Mall and 1983 A Taste of Nanyang at Marina Bay Sands and one coffeeshop at Blk 204 Choa Chu Kang Avenue 1 as they were mostly unprofitable.
Revenue from F&B retail business segment decreased by $0.4 million to $27.4 million mainly due to the closure of three quick service restaurant (QSRs) at Harbourfront Centre, Changi Airport Terminal 2 and Fusionopolis and the closure of 12 F&B stalls in FY18.
The decrease was partially offset by revenue contribution from the four new F&B stalls in the food courts and coffeeshop at Fusionopolis, Oasis Terrace, Sengkang General Hospital and Tampines T-space; six F&B kiosks at Marina Bay Sands, Oasis Terrace, Cotai Sands in Macau, SingPost Centre, Kinex and United Square and two QSRs at Millenia Walk and Fusionopolis which commenced operations in FY18.
Cost of inventories decreased $0.1 million to $8.6 million in line with the decrease in revenue from F&B retail business; staff costs increased by $0.3 million to $8.6 million in 4Q18 mainly due to increase in headcount of management team and new F&B outlets opened in FY18; property rentals and related expenses increased by $2.1 million to $26.4 million mainly due to the increase in the number of F&B outlets in FY18.
Koufu has proposed a final dividend of 1.2 cents, bringing total dividends to 2.2 cents per ordinary share.
In Singapore, the group’s extensive islandwide network remains relatively steady with a total count of 47 food courts, 15 coffeeshops, a hawker centre and a commercial mall under the outlet & mall management segment, while the F&B retail segment constitutes 71 self-operated F&B stalls, 10 F&B kiosks, eight QSRs and three full-service restaurants.
Overseas, Koufu had opened its first Supertea F&B kiosk in Cotai Sands, Macau, in May 2018, adding to its Macau network that will now consist of a total of one foodcourt, two F&B stalls and two F&B kiosks. The group has also secured one new Koufu foodcourt site in Macau University that is targeted to open in 2Q19. The group will also be operating its first R&B Tea kiosk in the foodcourt at Macau University.
Shares in Koufu closed at 63 cents on Tuesday.
