Page 4 - ar2012

Chairman’s Statement
Dear Shareholders,
It is my pleasure to present to you the Annual Report and the Group’s results for the 15-month
financial period ended 31 March 2012.
On 16 August 2011, the Group announced the change of its financial year end to 31 March. The
operations review for the current financial year covered a period of 15 months, from 1 January
2011 to 31 March 2012. The results are presented against the previous 12 months’ financial
period, from 1 January 2010 to 31 December 2010.
Revenue
The Group’s revenue increased from approximately S$55.7 million for the 12-month period
from 1 January 2010 to 31 December 2010 (“12M2010”) to approximately S$76.5 million for
the 15-month period from 1 January 2011 to 31 March 2012 (“15M2012”), an increase of
approximately S$20.8 million or 37.3%.
The increase in the 15-month revenue was mainly due to:
(i) the inclusion of 3 months’ revenue from 1 January 2012 to 31 March 2012 (“Q12012”)
amounting to approximately S$15.6 million; and
(ii) a higher year-on-year revenue of approximately S$5.2 million for the 12-month period
from 1 January 2011 to 31 December 2011 (“12M2011”) as compared to 12M2010.
Revenue from the Retail Division increased from approximately S$53.2 million for
12M2010 to S$73.6 million for 15M2012, an increase of approximately S$20.3 million or
38.2%. The increase in the Retail Division’s 15-month revenue was mainly due to (i) the
inclusion of 3 months’ revenue for Q12012 amounting to approximately S$15.1 million;
and (ii) higher year-on-year revenue of approximately S$5.2 million for 12M2011 as
compared to 12M2010. Revenue contribution from new outlets as well as higher sales
from existing outlets contributed to the revenue growth in the Retail Division.
Revenue from other services, such as delivery and catering services, increased
from approximately S$2.5 million for 12M2010 to S$2.9 million for 15M2012,
an increase of approximately S$381,000 or 15.1%. Revenue from other services
decreased by S$119,000 for 12M2011, as compared to 12M2010. The 3-month
revenue for Q12012 from other services was S$500,000.
As at 31 March 2012, the Group operated a total of 82 outlets in Singapore, as
compared to 78 outlets as at 31 December 2010. As at 31 December 2011, the
Group had 81 outlets in Singapore.
The Group’s signature puff products remained the major contributor to its
revenue and accounted for approximately 33.7% of the Group’s revenue in
15M2012, as compared to approximately 34.3% in 12M2010.
Cost of Sales and Gross Profit
Cost of sales increased from approximately S$22.3 million in 12M2010 to
S$30.5 million in 15M2012, an increase of approximately S$8.2 million or
36.8%. The increase was in line with the higher revenue generated by the
Group. While revenue increased by 37.3%, the cost of sales increased at
a lower rate of 36.8%.
The Group’s gross profit increased from approximately S$33.4 million
in 12M2010 to S$46.0 million in 15M2012, an increase of approximately
S$12.6 million or 37.6%. The Group’s gross profit margin increased slightly
from approximately 59.9% in 12M2010 to 60.1% in 15M2012 mainly due to
improved production staff efficiency.
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