Kimly Limited FY2025 Financial Results: Steady Expansion and Resilient Profitability

Kimly Limited, a prominent operator in Singapore’s heartland food and beverage (F&B) sector, has released its FY2025 financial results. The report highlights steady growth in revenue and profits, continued expansion of its physical footprint, strong cash generation, and consistent dividend payouts. Below, we break down the key financial metrics, operational highlights, and strategic updates relevant to investors.

Key Financial Metrics and Year-on-Year Comparison

Historical Performance and Profitability Trends

Kimly has demonstrated resilience and steady growth over the past five years. Revenue increased modestly in FY2025, and gross profit margin improved by 0.8 percentage points. EBITDA and net profit also edged higher, despite a slight drop in net cash from operating activities and cash balances, likely attributable to strategic acquisitions and ongoing investments.

Dividends

The company proposed a total dividend of 1.68 Singapore cents per share for FY2025, down from 2.00 cents in FY2024. The dividend payout ratio remains high at 74.8%, reflecting Kimly’s ongoing commitment to returning value to shareholders despite a slightly lower payout this year.

Operational and Strategic Highlights

• Expansion of Footprint: Four new outlets were opened in FY2025, increasing the total managed outlets to 89. The company also completed the acquisition of two strategic coffee shop properties, reinforcing its presence in mature, high-traffic estates.
• Stable Occupancy: As of 30 September 2025, Kimly achieved a 97.5% occupancy rate across its 638 food stalls, underpinning stable recurring income.
• Diversification of Offerings: The group continually refreshes its menu with new collaborations and product launches, such as heritage-inspired dishes, new ready-to-eat items, and expanded halal options to cater to evolving consumer preferences.
• Operational Efficiency: Introduction of shared kitchen concepts and technology upgrades (e.g., rotary ovens) are streamlining operations, maximising manpower, and improving customer experience.
• Financial Strength: Kimly maintains a robust balance sheet, with total assets at S\$398.6M and shareholders’ equity at S\$198.5M as of 30 September 2025.

Potential Risks and Noteworthy Events

• Dividend Reduction: The total dividend per share decreased to 1.68 cents from 2.00 cents, which may signal more cautious capital management or anticipated higher investment needs.
• Cash Position: Cash and equivalents saw a significant year-on-year decline, largely due to acquisition activity. However, the company still maintains a healthy cash buffer.
• No Major Legal or Macroeconomic Events: The report did not highlight any ongoing legal disputes, asset revaluations, extraordinary gains/losses, or macroeconomic headwinds.
• Continued Expansion: The company remains committed to expansion, particularly in the halal and food retail segments, which may involve further capital expenditure.

Outlook and Strategic Focus

Kimly’s ongoing strategies include:

• Diversifying product offerings and revenue channels
• Expanding its physical and retail footprint, with a special focus on the halal segment
• Strengthening operational capabilities through technology and central kitchen enhancements

The report’s tone is constructive, with no signs of distress or negative outlook. Management continues to balance growth initiatives with stable dividends and operational efficiency.

Conclusion and Investor Recommendations

Overall Assessment: Kimly Limited’s FY2025 results point to a stable and resilient business. Although growth is moderate and dividends are slightly reduced, the company’s fundamentals remain solid. Its strategic expansions, high occupancy rates, and operational improvements support a steady outlook.

• If you are currently holding the stock: Consider maintaining your position. The group’s consistent profitability, high occupancy, and focus on expansion in growth segments (such as halal food retail) suggest ongoing stability and potential for long-term appreciation. However, monitor future dividend trends and cash flow management, especially as the company invests in new outlets and acquisitions.
• If you are not currently holding the stock: Kimly may be suitable for investors seeking stable, dividend-paying stocks with exposure to Singapore’s resilient F&B sector. Entry may be attractive for income-focused investors, though expectations should be tempered for rapid growth. Potential investors should monitor the company’s ability to maintain margins and cash flows amidst expansion.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Please conduct your own due diligence or consult a professional advisor before making investment decisions.

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