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Tag: Kimly

  • Kimly buys six food outlet stores

    Kimly buys six food outlet stores

    Singaporean coffee shop operator Kimly has completed acquisitions of six food outlet properties for US$25.4 million.

    The acquisitions include two coffee shops, three industrial canteen units, and a restaurant. The firm is poised to acquire two further coffee shops pending approvals, which have been delayed by the coronavirus pandemic. Funding for the new properties was partially obtained via the issuance of 22 million new shares.

    Most of the acquired properties will progressively undergo asset enhancement initiatives such as layout improvements, an increase of seating capacity, and the introduction of new food concepts aimed at retaining current food stall operators, attracting new food stall tenants as well as better serving customers.

    “We continue to look for opportunities to acquire and operate more strategically located food outlets with the view of enhancing long-term shareholder value and the group’s profitability,” read a statement by directors of the group.

    “Moving ahead, we remain committed to our strategy to pursue long-term direct ownership in properties where the group operates and manages food outlets to further extend our presence across the heartlands of Singapore.”

    With the completion, Kimly’s total number of food outlets increases from 73 to 79, complemented by an additional four drink stalls and three food stalls. It has increased its number of food outlets and food stalls from 64 to 79 and from 121 to 137 respectively since its IPO.

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  • Singapore coffee chain Kimly boosts profit, despite Covid-19

    Singapore coffee chain Kimly boosts profit, despite Covid-19

    Singaporean traditional coffee shop operator Kimly has recorded a 5.3-per-cent year-on-year boost in half-year profit to SG$10.5 million (US$7.4 million).

    The result was achieved on a more modest 1-per-cent increase in sales to $107.4 million ($75.74 million) in the half-year ended March 31.

    The improved revenue was largely due to the brand’s five new coffee shops and eight food stalls opened since November.

    While the Covid-19 pandemic seriously and adversely impacted economic growth prospects in Singapore, Kimly’s coffee shops, canteens and food courts remain open for takeaway and delivery services throughout. Since the nation’s circuit breaker was introduced on April 7 footfall has fallen at these locations, the company said.

    “In line with the further tightening of circuit breaker measures recently, the group has suspended operations at its six Rive Gauche outlets and Cake Central Kitchen facility but the group does not expect the suspension to have any material impact on the group’s revenue.”

    The Kimly board said that besides placing focus on enhancing food offerings and operational efficiency in the upcoming year, “we remain committed to secure more long-term direct ownership of food outlets and food stalls in matured estates which is in line with our asset ownership strategy”.

    “We believe that there are still acquisition opportunities in the local market where we can tap on to further expand our presence in Singapore as well as enhance our profitability.”

  • Kimly aims to raise $40m in first kopitiam IPO

    Kimly aims to raise $40m in first kopitiam IPO

    Kimly is in line to become the first operator of traditional coffee shops to be listed in Singapore. The company – reported last month as eyeing a listing – tabled its initial public offering yesterday. It is offering 173.8 million new shares at 25 cents apiece, comprising 170 million placement shares and 3.8 million shares for the public.

    The offer closes at noon on March 16, with trading expected to start on the Catalist board on March 20.

    Kimly is a household name for its “kopitiams” offering food and beverage. It has nearly 500 stalls across 64 outlets – 56 coffee shops, five food courts and three industrial canteens.

    The network includes 121 stalls that carry the company brand, selling dim sum, seafood zi char and mixed vegetable rice, among other things. These are managed under the company’s food retail division.

    The rest of the stalls are leased to tenants paying rent and management fees that go to Kimly’s outlet management division. This division accounted for around 57 per cent of Kimly’s total revenue last year.

    The business is highly resilient, with strong cash flows and healthy earnings growth, executive director Vincent Chia said yesterday.

    “We are in a defensive industry that serves a very fundamental market need. This is really a grassroots business – everyone can walk in and have a nice meal at a very affordable price. We don’t talk about income brackets,” he added.

    And despite its size, Kimly only commands a 5.8 per cent market share, “so we have plenty of room to grow”, said Mr Chia.

    Kimly’s revenue expanded from $148.9 million in 2014 to $172.2 million last year – a compound annual growth rate of 7.6 per cent.

    Net profit racked up compound annual growth of 9.9 per cent over the same period to hit $24.2 million last year, implying a price-to-earnings ratio of 12.02 for the stock, while cash flow from operating activities remained steady, from $21.8 million in 2014 to $28.4 million in 2016.

    Cash and bank balances amounted to $29.4 million last year, with no outstanding borrowings.

    “We intend to pay out no less than 50 per cent (of net profit) for dividend,” said Mr Chia.

    He said the listing will not lead to food price hikes, aside from the usual inflation-related adjustments.

    Kimly is looking to raise about $40.4 million of net proceeds from the IPO, with the bulk earmarked for potential acquisitions and joint ventures, with a focus on adding more offerings to its brand. Some funds will also be used to boost productivity, with plans to expand its central kitchen to double the capacity.

    “Last November we launched online delivery service for our dim sum, something that we’re looking to extend to more products. We may be kopi boys, but we are forward- thinking kopi boys,” said Mr Chia.

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