Wed, May 09, 2018 - Page 12 News List

La Kaffa profit soars on quick expansion abroad

By Kuo Chia-erh  /  staff reporter

Food and beverage chain La Kaffa International Co (六角國際) yesterday posted revenue of NT$291.4 million (US$9.78 million) for last month, a 61.65 percent jump from NT$180.27 million a year earlier, thanks to its quick expansion in overseas markets.

That lifted cumulative revenue in the first four months of this year to NT$1.08 billion, a 53.57 percent increase from NT$706.24 million a year earlier, the company said in a statement.

The company, whose best-known franchise brands include Chatime (日出茶太) bubble tea stores and Duan Chun Zhen Beef Noodles (段純貞牛肉麵), attributed the performance primarily to the acquisition of a China-based beverage chain, Re Light Management Co Ltd (瑞里).

La Kaffa in December last year announced a plan to spend 60 million yuan (US$9.43 million) on the deal, as part of its efforts to expand its presence in the Chinese market.


Re Light, the operator of two popular beverage brands, Heilongtang (黑龍堂) and Gomax (果麥), has more than 1,100 stores in China, company data showed.

La Kaffa plans to increase its number of outlets in China to 1,600 by the end of this year, the company said.

The expansion of Chatime stores in overseas markets also lent support to the growth momentum, the Hsinchu-based beverage operator said.

The total number of La Kaffa’s beverage outlets is expected to reach more than 2,500 this year, the firm said.

La Kaffa gave an optimistic business outlook for this year, partly because it has tapped into the bakery market to diversify its revenue portfolio.

The company aims to accelerate the expansion of its bakery brand Bake Code (烘焙密碼) over the next three years, with a target of increasing the number of Bake Code outlets to 30 from eight, it said.


The company meanwhile said its board has approved a proposal to distribute a cash dividend of NT$4 per common share, based on last year’s earnings per share of NT$5.02.

The proposed dividend, if approved by shareholders on May 29, would be equivalent to a payout ratio of about 90 percent.

The board also approved the issuance of 1,745,096 new shares through capitalization of last year’s earnings to replenish its operating capital.

La Kaffa shares yesterday edged down 0.8 percent to close at NT$99.1 on the Taipei Exchange. The stock has risen by more than 17 percent since the beginning of this year.

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