Koufu Group's profit drops 64.3% in FY 2020
The company remains confident in its “resilient” business model.
Singapore-listed Koufu Group saw net profit drop over 64% S$9.88 million as the coronavirus pandemic impacted operations, whilst revenue was 19% lower at S$192.38 million.
For the second half-year, it nearly halved year-on-year, from S$13.58 million down to S$7.35 million. Revenue for the six months ended 31 December 2020 was 15% lower at S$103.4 million, on the back of lower contributions from both its outlet and mall-management business segment, as well as its food and beverage (F&B) retail business segment.
“Koufu’s defensive business nature helped to ensure earnings resilience as we ploughed through the challenging period, including two months of Circuit Breaker which saw movement controls such as the prohibition of dine-in services and other restrictions that adversely impacted all F&B businesses,” executive chairman and chief executive officer Pang Lim.
During the financial year, the group said it capitalised on its “strong” cash position, citing the acquisition of traditional snacks and dough products group Deli Asia and its master franchise agreement with Shakey’s Pizza Asia Ventures Inc. to grow the R&B Tea brand in the Philippines.
The group is also actively looking to expand in new locations, having recently secured two new locations at Sun Plaza and Oasis Terrace opening in the first half of 2021.
Currently, Koufu has 48 food courts, 18 coffee shops and a commercial mall under the outlet & mall management segment, whilst the F&B retail segment is made up of 74 self-operated F&B stalls, 36 F&B kiosks, seven QSRs, four full-service restaurants and 57 Delisnacks branded F&B stalls.
It has secured two new locations for R&B Tea kiosks at Fusionopolis, which opened in January 2021 and Sun Plaza to be opened in Q1 2021. Three new food courts at Sun Plaza, Koufu’s new headquarters at Woodlands Height and Nanyang Technological University will also open by Q2 2021.