Kimly Ltd (SGX:1D0) FY2025 Results — A Full Accounting-Based Analysis of Singapore’s Largest Coffeeshop Operator
Kimly Ltd (SGX:1D0) FY2025 Results — A Full Accounting-Based Read of Singapore’s Largest Coffeeshop Operator
Reading Kimly’s FY2025 numbers like an accountant — revenue, margins, cash, dividends and what it all means for long-term, dividend-focused investors.
Published: 11 December 2025 | Based on: Kimly Ltd FY2025 results (financial year ended 30 September 2025)
Key Numbers (At a Glance)
- Revenue: S$310.1m (up from S$299.8m — about 3.4% growth).
- Gross profit: S$86.6m (up from S$82.7m).
- Net profit (PATMI): S$31.3m (vs S$28.4m — about 10.2% growth).
- Cash & cash equivalents: S$103.7m.
- Total borrowings: S$14.0m — Kimly is in a net cash position.
- Dividend: Final dividend declared of 0.56 cents per share.
- Overall picture: A stable, defensive coffeeshop operator with strong cash discipline and modest growth.
1. Big Picture — What FY2025 Tells Us About Kimly
Kimly runs a very Singaporean business model: traditional coffeeshops, food courts and related food retail. It sells everyday meals at price points that remain affordable even when times are tough. That alone gives the business a naturally defensive character.
FY2025 numbers show a company that has:
- Grown revenue modestly,
- Expanded gross profit and net profit,
- Built up a very strong net cash position,
- Continued paying dividends conservatively.
Explaining it like you’re 11:
Kimly is like the “canteen uncle” for the whole neighbourhood. People eat there whether the economy is good or bad. In FY2025, more people came back to eat, the canteen managed its ingredient and staff costs better, and it kept a lot of cash in the bank.
2. Revenue Performance — Still Growing From a Defensive Base
Kimly recorded FY2025 revenue of S$310.1m, up from S$299.8m in FY2024 — a growth of about 3.4%.
Main drivers of the top line:
- Higher food retail revenue from improved footfall as daily routines normalised.
- Contributions from refurbished and newly acquired outlets.
- Steady, recurring outlet management fees.
Revenue growth is not explosive — nor should we expect it to be from a mature Singapore coffeeshop base. The key is that it is recurring, diversified across many outlets, and behaviourally sticky.
Analyst insight:
- Coffeeshop dining is a small-ticket, high-frequency habit. That makes Kimly’s top line more resilient than many discretionary F&B concepts.
- A 3–4% growth rate, when combined with margin stability and good cash discipline, can still compound nicely over time.
3. Gross Profit & Margins — Squeezed Costs, Slow Improvement
Gross profit increased to S$86.6m, up from S$82.7m in FY2024. That’s growth of around S$3.9m, in line with the modest revenue increase.
What helped margins:
- Central kitchen efficiencies (scale in food preparation).
- Streamlined supplier arrangements and better procurement.
- Menu optimisation and pricing discipline across stalls.
While labour and utilities remain structural cost pressures in Singapore, Kimly’s ability to gently lift gross profit suggests its operating model is absorbing the pressure reasonably well.
Explaining it like you’re 11:
Gross profit is the money left after paying for food ingredients and direct costs, but before paying rent and head office staff. Kimly found small ways to buy ingredients smarter and run the kitchen better, so it kept a bit more from each plate of food sold.
4. Net Profit (PATMI) — A Solid, Clean Earnings Year
Net profit attributable to shareholders (PATMI) rose to S$31.3m, up from S$28.4m in FY2024 — about 10.2% growth.
This improvement was driven by:
- Higher revenue from core operations.
- Cost containment and efficiency measures.
- Lower depreciation following outlet rationalisation and optimisation.
Importantly, this looks like a “clean” profit uplift — not reliant on one-off gains or accounting tricks. For an income-oriented investor, this matters more than headline growth rates.
Analyst insight:
- Kimly’s business model is capital-light relative to many F&B peers — it doesn’t chase fancy concepts or risky overseas bets.
- That allows more of each year’s profit to convert into cash, rather than being constantly ploughed into high-risk expansion.
5. Cash Flow & Balance Sheet — Why Net Cash Matters
Kimly’s cash and cash equivalents rose to S$103.7m. Total borrowings are S$14.0m, leaving the Group in a comfortable net cash position.
What this enables:
- Room to acquire attractive coffeeshop or food court assets.
- Capex for refurbishments and upgrades, without stressing the balance sheet.
- Capacity to sustain dividends even in a softer year.
- Optionality to weather unexpected shocks (e.g. cost spikes, regulatory changes).
Explaining it like you’re 11:
Imagine Kimly as a shop owner with a very fat piggy bank and almost no loans. If business gets a bit tougher one year, it can still pay the rent, pay workers and even give some money back to shareholders, without panicking.
6. Segment Insights — Where the Earnings Come From
6.1 Food Retail
Food retail benefitted from stronger dine-in volumes and contributions from new/refurbished outlets. Central kitchen optimisation supported better stall-level performance, helping preserve margins despite wage and utility inflation.
6.2 Outlet Management
Outlet management remains a steady, fee-based business. It provides predictable income and acts as a stabiliser for the Group’s overall earnings profile, especially when individual stall performance fluctuates.
6.3 Food Manufacturing
Food manufacturing saw margins improve due to better procurement and process efficiencies. While smaller than the core coffeeshop operations, it supports product consistency and enables some scale benefits across the network.
7. Dividend & Capital Allocation — How Shareholders Are Rewarded
Kimly declared a final dividend of 0.56 cents per share. The payout ratio remains conservative relative to earnings and cash flow, signalling a preference for:
- Maintaining a strong net cash position,
- Funding organic growth and opportunistic acquisitions,
- Keeping dividends sustainable rather than stretching for yield.
For dividend investors, this approach can feel “boring” — but boring, cash-backed dividends are usually more reliable than aggressive payouts funded by debt.
8. Key Risks Investors Should Keep in View
- Labour cost pressure: foreign manpower policies and minimum wage dynamics affect stall profitability.
- Utility cost volatility: electricity and gas prices can erode margins if not passed through.
- Singapore concentration: no overseas diversification; earnings are tied to the local economy.
- Competitive coffeeshop bids: intense competition for good locations may push up rental bids.
- Regulatory changes: any shift in hawker/coffee shop policy could affect economics over time.
9. My Overall Take as an Accounting-Trained Investor
Kimly’s FY2025 results reinforce the picture of a steady, cash-generative, modest-growth business.
It is not a high-flying growth stock. But it has:
- Recurring, defensive revenue from everyday dining,
- Improving gross profit and net profit,
- A strong net cash balance sheet,
- Conservative, sustainable dividends.
For long-term investors who like simple, robust business models and are comfortable with Singapore consumer exposure, Kimly can be a reasonable candidate for a core dividend-focused watchlist — always subject to valuation.
As always, the key is not just “Is this a good company?”, but:
“What am I paying for each dollar of sustainable earnings and cash flow?”
If you enjoy this kind of accounting-based breakdown, you can find more company analyses on the Companies A–Z page.
10. FAQ — Kimly for Singapore Dividend Investors
Q1. Is Kimly a dividend stock?
Yes. Kimly has a track record of paying dividends and currently holds a strong net cash position. The payout ratio is conservative, which supports sustainability.
Q2. Is Kimly affected by Singapore’s labour policies?
Yes. Labour is a major cost, and foreign manpower rules can impact staffing flexibility and wages. This is a key operating risk to monitor.
Q3. Does Kimly have overseas operations?
No. Kimly is fully focused on the Singapore market. That concentration brings both clarity (familiar market, focused execution) and risk (no geographic diversification).
Q4. Is the business recession-resistant?
Relatively so. Coffeeshop dining is affordable and habitual, which tends to hold up even during downturns. But Kimly is not immune to broader employment or cost shocks.
Q5. What should investors watch going forward?
Key indicators include:
- Same-outlet performance and any significant outlet acquisitions or disposals,
- Trend in gross and net margins amidst labour and utility cost changes,
- Cash balance vs capex and dividends,
- Any regulatory or competitive developments in the coffeeshop sector.
The Accounting Investor (HenryT) is a Fellow Chartered Accountant (FCA) based in Singapore. He combines professional accounting training, corporate finance experience and personal dividend investing to help everyday investors read financial statements with confidence.
Browse more SGX breakdowns on the Companies A–Z page.
Disclaimer
This article is for education and general information only. It does not constitute investment, legal, tax or any other form of professional advice, and it is not a recommendation to buy, sell or hold any securities mentioned.
My sole intent is to help readers learn how to read financial statements and think more clearly about businesses. Please do your own research or consult a licensed financial adviser before making any investment decisions. I may or may not hold positions in the securities discussed at the time of writing and am under no obligation to update this article.
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