Net Profit Decline: 6.0% – Kimly Limited FY2024 Financial Analysis

Business Description

Kimly Limited operates primarily in the food and beverage sector in Singapore. The company manages a diverse range of food outlets, including traditional coffee shops, halal coffee shops, industrial canteens, and food courts. Kimly also has a significant presence in food retail, offering non-halal and halal food products through various stalls and restaurants. The company leverages its scale with technology to enhance operations and customer experience.

Industry Position

Kimly Limited is a key player in the local food and beverage industry, competing with other established food court operators and coffee shop chains. The company’s market share is supported by its extensive network of food outlets and its investment in technology to improve efficiency.

Revenue Streams and Customer Base

Kimly’s revenue primarily comes from its outlet management division, food retail division, and outlet investment division. The company caters to a broad customer base, including local residents, tourists, and office workers. Its competitive advantage lies in its strategic locations, diverse product offerings, and affordability.

Financial Statement Analysis

Income Statement

For FY2024, Kimly reported a revenue of S\$319.4 million, reflecting a year-on-year increase of 1.8% [[18]]. Gross profit grew slightly by 1.9% to S\$90.6 million, with a gross profit margin of 28.4% [[18]]. However, net profit after tax declined by 6.0% to S\$34.6 million [[19]].

Balance Sheet

The company maintains a strong balance sheet with total assets of S\$400.5 million and total liabilities of S\$210.4 million as of FY2024 [[23]]. Cash and cash equivalents increased to S\$98.5 million, indicating strong liquidity [[21]].

Cash Flow Statement

Kimly generated S\$44.5 million in net cash from operating activities in FY2024, demonstrating its ability to generate consistent cash flow [[22]].

Dividends

Kimly proposed a final dividend of 0.68 Singapore cents per share for FY2024, with a total dividend payout ratio of 75.0% [[24]].

Key Findings

Strengths

• Diverse Revenue Streams: Kimly’s multiple business segments reduce dependency on any single source of income.
• Strong Liquidity: A robust cash position supports the company’s ability to meet obligations and invest in growth opportunities.

Risks

• Declining Profitability: The decrease in net profit highlights potential challenges in maintaining cost efficiency.
• Manpower Shortage: The closure of outlets due to manpower issues could impact revenue growth.

Special Activities

Kimly is focusing on strengthening its central kitchen operations and leveraging technology, such as QR code payment systems, to improve operational efficiency and customer satisfaction [[13]][[14]].

Investment Recommendations

• Current Shareholders: Hold the stock as the company shows potential for recovery and growth through strategic initiatives.
• Potential Investors: Consider investing if you are confident in the company’s ability to overcome current challenges and leverage its strengths for future growth.

Disclaimer

The analysis and recommendations provided are based on the FY2024 financial report of Kimly Limited. Investors should conduct their own research and consider their financial situation and risk tolerance before making investment decisions.

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