CURRY puff specialist Old Chang Kee on Thursday (May 30) posted a 50 per cent rise in net profit to S$5.3 million for its second half ended March 2024, from S$3.5 million in the same period a year ago.
Revenue for the half-year rose 10 per cent to S$50.7 million, from S$46.1 million the year before, driven by higher retail, delivery, catering and non-retail sales.
Revenue from Old Chang Kee’s retail outlets increased by S$3.5 million or 8.3 per cent, due mainly to incremental revenue from new outlets and an increase in revenue from existing outlets. This was partially offset by a decrease in revenue from outlets which have closed. As at Mar 31, the group operated a total of 79 outlets in Singapore.
Meanwhile, its revenue from other services, such as delivery, catering and non-retail sales, climbed by S$1.1 million or 24.4 per cent. This was primarily due to higher delivery revenue, corporate catering orders and non-retail sales, arising from a continued pick-up in events organised in H2 FY2024.
Selling and distribution expenses rose 12.8 per cent to S$20.3 million, from S$18 million the year before. This was attributed to higher staff, advertising and promotion costs, depreciation of right-of-use assets, and turnover rental expenses during the period under review.
Earnings per share stood at S$0.0436 for the period, up from S$0.0291 a year ago.
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For the full year ended March, net profit rose 57.2 per cent to S$9.7 million. Revenue was also up, climbing 12.4 per cent to S$101 million. Earnings per share stood at S$0.0797 for the full year, up from S$0.0507 the year before.
A final dividend of S$0.01 per share was declared, unchanged from the year-ago period.
Old Chang Kee noted that inflationary pressures have remained persistent, particularly for raw material and labour costs. Rental costs also remained elevated.
It added that the current manpower shortage in the retail sector remains “challenging”, while retail demand “looks subdued” in the near term.
“The group will continue with its current strategies to navigate this difficult period of sustained inflation,” it said. These include efforts to reduce operating costs, improve gross margins, rationalise the group’s operations to overcome manpower shortages, and look for more non-retail revenue streams, such as business-to-business sales.
In addition, the group will continue to look for opportunities to increase the number of outlets at strategic locations, such as high-traffic transport hubs. It will also explore possibilities for “synergistic business combinations”, as well as expanding its logistics and manufacturing facilities.
Shares of Old Chang Kee closed flat at S$0.725 on Thursday, before the results were announced.
