Koufu Group posts 82% decline in H1 profits
It expects to remain profitable in the next 12 months.
Koufu Group’s profits dropped 82% to S$2.54 million (approx. US$1.8 million) for the six months ended 30 June, as the pandemic and Singapore’s circuit-breaker measures took a big bite of their earnings.
Revenue was down 23.2% to S$88.97 million compared to year ago, primarily attributed to the impact of the COVID-19 outbreak.
Contributions from the outlet and mall-management segment, which makes up 53.7% of the group’s revenue, was down 19.4% year-on-year to S$47.8 million in H1 2020, citing the decrease in fixed rental income as the group had passed on rental rebates to stall tenants and a decrease in variable rent due to lower footfall at most of their outlets.
Earnings per share was at 0.46 Singapore cents for the half-year, lower from 2.54 cents a year ago. The company declared an interim dividend of 0.5 Singapore cent, down from 1 cent previously. This will be paid out on 3 September.
The company’s F&B retail segment, which contributed the other 46.3% of the group’s revenue, recorded a 27.2% decrease to S$41.2 million in H1 2020. This was attributed to the lower footfall at most of the outlets, especially during the circuit-breaker period and Phase 1 of reopening, when dine-in was still not allowed.
In addition, ten food courts, three quick-service restaurants, two full-service restaurants and 26 R&B tea kiosks managed by the group had their operations temporarily suspended.
Pang Lim, the group’s executive chairman and chief executive officer, said they resumed operations for most of its outlets on 19 June under Phase 2 of the reopening.
Koufu expects to open a new food court in the second half of 2020 in the Lion City after having opened two new coffee shops in H1 2020 locally. Internationally, it has secured the lease for a third food court in Macau, planned to open later this year.
Growing the R&B Tea and Supertea brands in Singapore, Macau and Malaysia will also be a focus. It recently opened its first R&B Tea outlet in Indonesia on 4 July, and has secured three leases for R&B Tea kiosks in Singapore, slated to open in the second half of 2020.
Plans to expand its other retail brands overseas are also in the works.
Koufu is also expecting to obtain the temporary occupation permit of its integrated facility by the second half of 2020, which they said would not only support the group’s growing business needs but also present an opportunity to create and diversify income streams.
