Kimly Limited, one of Singapore’s largest traditional coffeeshop operators, has announced a net profit of S$14.8m for the first half of the financial year 2025, ending 31 March. This represents a 15.6% decrease from the previous year, amidst a challenging environment marked by rising costs and manpower shortages. The company’s revenue saw a marginal increase of 0.5% to S$159.3m, driven primarily by its Outlet Management division.
The food and beverage industry continues to grapple with increased rental, raw material, and utility costs, alongside stringent foreign worker policies and rising wages. Despite these hurdles, Kimly remains committed to growth, having entered a joint venture in February 2025 to manage a short-term lease for a coffeeshop in Toa Payoh, and acquiring another in Serangoon Central, which began operations in April.
The company’s Directors stated, “These initiatives are in line with our continued efforts to expand our network in high-footfall, strategically located areas.” The Group’s strategy includes investing in research and development and enhancing central kitchen capabilities to boost efficiency and innovation.
Kimly’s Food Retail Division experienced a revenue decline of S$1.4m, attributed to the closure of underperforming stalls and outlets. However, this was partially offset by the opening of new stalls and outlets. The company declared an interim dividend of 1.00 Singapore cent per share, reflecting its commitment to shareholder value despite economic pressures.
Looking ahead, Kimly plans to closely monitor the evolving business landscape and adapt its strategies to maintain competitiveness and resilience in the face of ongoing geopolitical and inflationary challenges.
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