K2 F&B Holdings reported a S$0.79 million net loss for the six months ended 30 June 2026 (1H 2026), reversing a S$0.25 million profit a year earlier. The swing was driven by a S$1.09 million one-off loss linked to the disposal of a Singapore property that had been classified as held-for-sale. Excluding this transaction, underlying operations remained profitable.

Revenue slipped 3.2% year on year to S$25.23 million as the Group rationalised underperforming food & beverage (F&B) stalls. Sales of cooked food, beverages and tobacco—still the largest contributor at 67.8% of turnover—fell 5.4% to S$17.12 million. Rental income from leasing food-centre premises to tenants rose 3.5% to S$5.32 million, aided by a newly opened food centre and conversion of closed stalls into rental units. Service income from management, cleaning and utilities held steady at S$2.80 million.

Cost of inventories consumed declined 7.7% to S$7.24 million, reflecting lower F&B sales and price adjustments. Staff costs grew 2.7% to S$7.59 million, representing 30.1% of revenue, while property rentals and related expenses rose 12.5% to S$2.72 million amid higher short-term lease rates. Finance costs decreased 33.3% to S$1.23 million on reduced borrowings and lower interest rates.

Segmentally, Rental & Outlet Management generated S$8.11 million revenue and a S$0.93 million profit; Food & Beverage Stalls contributed S$17.12 million revenue and a S$1.51 million profit. Corporate and unallocated items produced a S$2.97 million loss, leading to the consolidated pre-tax loss of S$0.53 million.

Balance-sheet metrics shifted following the S$28.00 million property sale-and-leaseback completed on 6 May 2026. Net current liabilities widened to S$8.82 million (31 Dec 2025: S$1.32 million) after the removal of the held-for-sale asset, though cash and cash equivalents doubled to S$7.91 million. Interest-bearing bank borrowings fell 28.4% to S$64.10 million, lowering the gearing ratio to 67.1% from 90.6% at year-end.

The board paid a final dividend of 0.3125 Singapore cents per share (S$2.50 million) for FY 2025 on 24 July 2026 and did not declare an interim dividend for 1H 2026.

Management stated that portfolio optimisation, cost control and selective growth initiatives remain priorities amid inflation and labour-cost pressures. No material events were reported after the interim period end.