Old Chang Kee Ltd posted a net profit of S$9.55 million for the 12 months ended 31 Mar 2026, down 15.8 per cent year-on-year, as higher operating costs offset a 1.5 per cent rise in revenue to S$103.48 million.

Earnings per share slipped to 7.87 Singapore cents from 9.35 cents a year earlier. The board has proposed a final dividend of 2.0 Singapore cents a share, comprising a 1.0-cent ordinary and a 1.0-cent special payout, doubling the prior year’s final dividend of 1.0 cent. Together with the interim dividend of 1.0 cent already paid, total distributions for FY2026 will amount to 3.0 cents a share, up from 2.0 cents in FY2025. Record and payment dates will be announced later.

Segmentally, Singapore remained the dominant contributor, delivering S$103.18 million in external sales and S$11.22 million in pre-tax profit. The Malaysia unit generated S$0.29 million in revenue and S$0.43 million in pre-tax profit, while Australia broke even with marginal contributions. Group gross margin held firm at 69.2 per cent, supported by lower utilities and depreciation, despite higher raw material costs.

Cost pressures weighed on the bottom line. Selling and distribution expenses climbed 4.1 per cent to S$42.44 million on increased staff costs, outlet depreciation and subcontractor fees. Administrative expenses rose 4.2 per cent to S$17.43 million, reflecting higher employee benefits and bank charges linked to greater digital payment volumes. Finance costs eased 8.8 per cent after loan repayments, but other expenses included a S$0.34 million impairment on right-of-use assets. Tax expense edged up 5.2 per cent to S$2.20 million following a deferred-tax credit booked in the prior year.

The bakery and snack operator generated S$23.57 million in operating cash flow, down from S$25.17 million a year earlier. After S$1.43 million of capital expenditure and S$16.66 million of financing outflows – largely lease and loan repayments plus S$2.43 million of dividends – cash and bank balances increased to S$57.92 million at end-March, from S$52.44 million a year ago. Net cash position and a positive working-capital balance of S$38.31 million leave the company well-funded for expansion.

Looking ahead, management highlighted persistent inflation in raw materials, labour shortages and higher rents as continuing headwinds. The group plans to counter these pressures through cost-reduction measures, gross-margin optimisation and operational streamlining. It also intends to widen non-retail revenue via business-to-business channels and to pursue selective outlet expansion in high-traffic transport hubs, while investing in logistics and manufacturing capacity to support growth.