Jude Chan

SINGAPORE (May 9): Coffeeshop operator Kimly posted a 25.3% drop in earnings to $4.5 million for the second quarter ended March in its maiden set of results following its recent listing on the Catalist Board.

Assuming the restructuring exercise had been completed in Oct 2015, earnings in the second quarter last year would have been $6.1 million as there would be no profit attributable to non-controlling interests.

Excluding one-off listing expenses of $1.0 million and convertible loans related expenses of S$0.2 million, earnings would have been $5.7 million in 2Q17, a decline of 5.7% from a year ago.

The lower earnings were mainly attributable to a 54.2% increase in administrative expenses to $4.3 million in 2Q17. This was as a result of an increased employee benefits expense, incentive bonus, and higher depreciation expense.

Revenue in 2Q17 grew 12.4% to $47.4 million, from $42.1 million a year ago.

This was mainly attributable to higher contribution from the sale of cooked food, beverages, and tobacco products, as well as increase in rental income and income from provision of cleaning and utilities services.

Cash and cash equivalents stood at $73.6 million as at March 31, 2017.

The group has declared an interim dividend of 0.28 cents per share.

&ldquo Construction of the new extension is on track and we will be installing new equipment and machinery as well as new software for our Central Kitchen to increase operational efficiencies,&rdquo says Kimly executive director Vincent Chia.

&ldquo Going forward, we will continue to focus on executing our other growth plans, which include implementing cashless payment systems at our food outlets, extending our online food ordering and delivery system, as well as expanding the network of our food stalls and refurbishing existing food outlets,&rdquo Chia adds.

Shares of Kimly closed flat at 46 cents on Tuesday.