Kimly Limited posted a 10.6% year-on-year rise in net profit to S$16.4 million for the six months ended 31 March 2026, driven mainly by additional contributions from newly opened coffee shops and drink stalls.

The traditional coffeeshop operator’s revenue inched up 1.3% to S$161.4 million, while gross profit improved 4.2% to S$45.6 million, lifting gross margin to 28.3% from 27.5% a year earlier. Kimly declared an interim dividend of 1.00 Singapore cent per share; the company did not disclose a comparative figure for the previous interim payout or indicate a payment date.

Segment performance showed mixed trends. Revenue from the Outlet Management Division rose to S$66.5 million from S$65.2 million, and the Outlet Investment Division increased to S$5.1 million from S$3.5 million, reflecting contributions from three coffee shops and one halal coffee shop added during the period, as well as prior-year openings. Conversely, the Food Retail Division slipped to S$89.8 million from S$90.6 million, weighed by weaker takings at existing stalls and the closure of 15 underperforming outlets since the start of FY2025.

Higher employee costs linked to Progressive Wage Model adjustments, along with greater depreciation of right-of-use assets, lifted cost of sales by S$0.2 million to S$115.7 million. These pressures were partly offset by S$2.2 million in Progressive Wage Credit grants, supporting the margin improvement. EBITDA rose 7.8% to S$48.9 million, while cash generated from operations increased to S$41.2 million from S$36.6 million.

Management cited escalating raw material, utility, rental and labour costs, as well as manpower shortages, as ongoing headwinds for Singapore’s food-and-beverage sector. Nevertheless, they noted that Kimly added three coffee shops—at Yishun Ring Road, Tuas Avenue 3 and Pasir Ris Drive 3—and eight food stalls during the half year, and completed the acquisition of the 12 Haig Road property in January to secure tenancy for its halal concept Kedai Kopi.

Looking ahead, the board said the company will keep to its four-pronged plan of expanding its physical footprint, diversifying product and revenue streams, scaling the Food Retail Division and enhancing operational capabilities to deliver long-term value.