Financial Performance - The Group's net profit after tax improved by approximately 28.8%, rising from approximately S$5.7 million in FY2022 to approximately S$7.3 million in FY2023[11] - The Group recorded consolidated revenue of approximately S$55.7 million for FY2023, an increase of approximately 17.9% from S$47.3 million in FY2022[22] - The consolidated net profit after tax for FY2023 was approximately S$7.3 million, representing an increase of approximately 28.8% from approximately S$5.7 million in FY2022[23] - The Group generated cash from operating activities of approximately S$8.9 million and from investing activities of approximately S$3.7 million, resulting in a net increase in cash and cash equivalents from approximately S$1.4 million to approximately S$7.4 million[24] - The profit after tax increased primarily due to higher revenue of approximately S$8.4 million and fair value changes of investment properties of approximately S$4.1 million[125] - Net profit after tax increased mainly due to revenue growth of approximately S$8.4 million and fair value changes in investment properties of approximately S$4.1 million, offset by increased costs in inventory, employee expenses, and financial costs[129] Revenue Growth - The Group's revenue increased by approximately S$8.4 million or 17.9%, from approximately S$47.3 million for FY2022 to approximately S$55.7 million for FY2023[100] - Revenue from the sale of cooked food, beverages, and tobacco products rose by approximately S$8.3 million or 23.4%, from approximately S$35.6 million for FY2022 to approximately S$43.9 million for FY2023[101] - Revenue from the sale of cooked food, beverages, and tobacco products rose by approximately S$8.3 million or 23.4% to approximately S$43.9 million in FY2023, driven by an increase in the number of food stalls[104] Operational Expansion - The Group opened more than 10 food stalls across five locations in Singapore during the year, while also closing underperforming stalls to optimize resources[18] - A new coffee shop outlet was opened in September 2023 at Punggol Drive, offering nine different food options in a vibrant dining environment[17] - The number of food and beverage stalls operated by the Group increased from 62 to 63 during FY2023, with 13 stalls opened and 12 closed[98] - The Group owned and managed 24 food centres as of December 31, 2023, an increase from 23 centres at the beginning of the year[97] - The Group intends to increase its presence in Singapore by opening new food establishments[99] Cost Management - Rising utility costs, rental expenses, and inventory costs have posed challenges, but the Group aims to enhance costing strategies to maintain sustainable operational expenses[35] - The operational costs in Singapore, including food, rent, utilities, and labor, have increased due to inflationary pressures[98] - Staff costs rose by approximately S$4.3 million or 33.9% from approximately S$12.7 million in FY2022 to approximately S$17.0 million in FY2023, accounting for approximately 30.4% of revenue in FY2023[111] - Property rentals and related expenses increased by approximately S$0.8 million or 20.7% from approximately S$3.6 million in FY2022 to approximately S$4.4 million in FY2023, due to the opening of new stalls[112] - Finance costs increased by approximately S$1.2 million or 70.1% from approximately S$1.6 million in FY2022 to approximately S$2.8 million in FY2023, mainly due to higher interest rates on outstanding loans[123] Strategic Initiatives - The Group's strategic focus includes efficient resource management and constant evaluation of operational strategies to optimize assets[11] - The Group plans to review and dispose of underperforming assets to free up capital for growth opportunities[38] - The Group is committed to exploring new markets and strategic investments to diversify income streams and enhance shareholder value[38] - The Group's strategic initiatives will focus on upgrading existing food centres to enhance the dining experience for customers[99] - The Group aims to acquire promising F&B businesses and brands to enhance its product offerings[99] Corporate Governance - The Group is committed to high corporate governance standards, complying with the Corporate Governance Code during FY2023[161] - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors[178] - The Company has arranged liability insurance for Directors to indemnify them against liabilities arising from corporate activities, with annual reviews of coverage[177] - The Company believes that having the same individual serve as both Chairman and CEO is beneficial for business prospects and management[184] - The Board composition meets the Listing Rules requirement of having at least three independent non-executive Directors, representing one-third of the Board[185] Challenges and Outlook - The Group anticipates ongoing challenges due to a manpower shortage in the F&B industry, leading to expected increases in labor costs[30] - The company faces challenges due to rising utility costs, rent, inventory, and construction material costs, alongside increasing competition and weak consumer spending[39] - Despite these challenges, the company has successfully mitigated the impact of economic headwinds through prudent financial management and strategic decision-making[39] - The company maintains a cautious but optimistic outlook for the food and beverage industry, acknowledging ongoing uncertainties in the global landscape[39] - The company is committed to adapting to changing market dynamics while upholding its core values and strategic objectives[39]
K2 F&B(02108) - 2023 - 年度财报