Koufu Limited (SGX:VL6), with a total of 52 Food courts, 17 coffee shops, and a commercial mall, together with 74 self-operated F&B stalls, 43 F&B kiosks, 6 quick-service restaurants, 4 full-service restaurants, and 57 DeliSnacks F&B stalls, released its results for the first half of the financial year 2021 ended 30 June 2021 yesterday evening (10 August 2021.)

As I have only invested in the company in late-May this year (you can check out all the companies I have invested in here, and if you like to know why I’ve made the investment decision, you can check it out here), this results review is my first for the company as a shareholder.

In this post, you’ll find key aspects about its latest financial results, its debt profile, and also its dividend payout to shareholders for the period under review to take note of.

Let’s begin…

Financial Results (1H FY2020 vs. 1H FY2021)

Since the start of FY2020, the company have switched to reporting its financial results on a half-yearly basis (as companies are no longer mandated to report their financial results on a quarterly basis,) As such, in this section, you will only find a review of its financial results recorded for the first half of FY2021 compared against the same time period last year (i.e. 1H FY2020):

1H FY20201H FY2021% Variance
Revenue (S$’mil)$88.9m$105.7m+18.8%
Net Profit (S$’mil)$2.2m$10.1m> +100.0%
Net Profit Margin (%)2.5%9.5%N.A.
Net Profit Attributable
to Shareholders (S$’mil)
$2.5m$9.9m> +100.0%

Remember in the same time period last year, Singapore was battling the worst of the pandemic, and the government even had to implement a 2-month ‘circuit breaker’ period to break the chain of transmission in the community where non-essential businesses had to temporarily suspend their physical operations. While F&B outlets were allowed to operate, but no dining-in was allowed, and this subsequently led to a significant decline in the F&B company’s financial results.

One year on, the situation was much improved, which explains the improvement in terms of its financial results on a year-on-year basis. To add, contributions from its newly acquired DeliSnacks business also contributed to the company’s revenue increase by S$5.9m.

Debt Profile (2H FY2020 vs. 1H FY2021)

Moving on, let us take a look at the company’s debt profile – if you have been following my company write-ups, you’re probably aware that my preference is always towards companies with minimal or no debt, as well as one that is in a net cash position.

In my review of the company’s debt profile in this section, I’ll be putting the statistics reported for the current period under review (i.e. 1H FY2021 ended 30 June 2021) and compare against that reported in the previous period 6 months ago (i.e. 2H FY2020 ended 31 December 2020) to find out if its debt profile have improved or deteriorated 6 months on:

2H FY20201H FY2021% Variance
Cash & Cash Equivalents
Total Borrowings (S$’mil)$13.7m$12.4m-9.5%
Net Cash/Debt (S$’mil)$62.7m$68.8m+9.7%

As a shareholder, I’m encouraged to see the company’s debt profile further strengthened compared to half a year ago – helped by a 6.3% increase in its cash and cash equivalents, along with a 9.5% decrease in its total borrowings – this led to its net cash position improve by 9.7%.

Dividend Per Share (1H FY2020 vs. 1H FY2021)

The management of Koufu Limited declares a dividend payout to its shareholders on a half-yearly basis, and the following table is its dividend payout to its shareholders for the current period under review, compared against the same time period last year:

1H FY20201H FY2021% Variance
Dividend Per Share
0.5 cents1.0 cents> +100.0%

In-line with an increase in its financial results, the management also restored its dividend per share to 1.0 cents/share (which is the same as 1H FY2019, before the pandemic) – the payout also represented about 56.0% of its net profit attributable to shareholders.

If you are a shareholder of the company, here are some of the dates regarding its payout you need to take note of:

Ex-Date: 24 August 2021
Record Date: 25 August 2021
Payout Date: 08 September 2021

Closing Thoughts

I’m sure you’ll agree with me that the company’s latest set of results – whether is it about its financial performance, debt profile, or its dividend payouts, is a very strong one, and one that is very much within my expectations.

With Singapore having just relaxed its safe management measures once again to allow dining-in since yesterday (10 August 2021), and especially if the country manage to successfully keep the pandemic under control and the Singapore government further relaxes the safe management measures (particularly allowing more people to sit together in the same table), then I’m optimistic that its upcoming results for the second half of FY2021, along with its full year results for FY2021 will record further improvements.

With that, I have come to the end of my review of Koufu Limited’s latest set of results. As always, the information presented above is purely for educational purposes only, and they do not represent any buy or sell calls for the company’s shares. Please do your own due diligence before you make any investment decisions.

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Disclaimer: At the time of writing, I am a shareholder of Koufu Limited.

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