COFFEESHOP operator Kimly reported a 7.2 per cent rise in net profit to S$36.5 million for the full year ended Sep 30, 2023, from S$34 million previously.

The increase was due primarily to a S$2.5 million gain from the disposal of its confectionery business.

Excluding the gain on disposal, net profit for FY2023 fell 0.2 per cent to S$34 million, when compared with the year-ago period, Catalist-listed Kimly said in a bourse filing on Monday (Nov 27).

Earnings per share for the period stood at 2.94 Singapore cents, up from 2.74 Singapore cents previously.

Revenue for the full year fell 1.2 per cent to S$313.9 million, from S$317.7 million a year ago.

The decline in revenue was due primarily to a S$7.4 million drop in contributions from Kimly’s food retail division, which posted sales of S$183.8 million in FY2023, compared with S$191.2 million in the year-ago period.

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Tapering demand for food delivery following the easing of Covid-19 restrictions affected delivery sales during the period, while the closure of six underperforming food stalls also contributed to the decline, Kimly said.

This was partially offset by a S$3.3 million rise in the coffeeshop operator’s outlet management revenue, which posted a 2.8 per cent gain to S$122.8 million.

The board has proposed a final dividend of 1.12 Singapore cents per share, unchanged from the same period a year ago.

Singapore’s food and beverage industry “is currently facing multiple challenges, including high inflationary pressure on raw materials and utilities, which are driving up operational costs”, Kimly said.

The coffeeshop operator added that it’s “actively exploring new food outlet opportunities to expand its footprint” as part of an organic growth strategy.

Shares of Kimly closed flat at S$0.305 on Monday, prior to the announcement.