六角國際事業股份有限公司
La Kaffa International CO., Ltd.
Investors
NEWS
Both Consolidated Sales Revenue and Net Operating Profit of La Kaffa International Hit Record Highs in 2015. Dividend Distributed is up to NT $5.5, Including NT$4 Cash Dividend and NT$1.5 Stock Dividend.
2016-03-14

La Kaffa International Co., Ltd. (hereinafter referred to as “La Kaffa,” stock code of Taipei Exchange: 2732) today announced its operating results and dividend policies of 2015.

Overview

-In 2015, La kaffa’s consolidated sales revenue was $1650 million, net operating profit $155 million, net profit after tax $139 million (shareholders’ equity), and EPS $5.06. Both consolidated sales revenue and net operating profit hit record highs, increasing 16.97% and 2.46% respectively compared to 2014.

-By the end of 2015, the number of La Kaffa’s stores around the globe was up to 716, which also has hit a record high. As Wagokoro Tonkatsu Anzu Ginza and Bake Code rapidly grew, new brands accounted for more than 20% of the overall revenue.

-Today, the Board of La Kaffa passed the resolution to approve the 2015 annual earning distribution proposal, which would distribute the dividend of up to $5.5, including $4.0 cash dividend and $1.5 stock dividend. According to La Kaffa’s closing price today, $87.4, its cash yield rate was up to 4.58%.

-La Kaffa stated that, in 2016, Chatime would continue to expand globally. After Wagokoro Tonkatsu Anzu Ginza’s rapid expansion in the second half of 2015, the depreciations of store rental and improvement would start to be amortized. In 2017, it is expected that Wagokoro Tonkatsu Anzu Ginza would enter an explosion phase of profit.

Review and objectives:

La Kaffa announced that its 2015 consolidated sales revenue was $1650 million, net operating profit $ 155 million, net profit after tax $ 139 million (shareholders’ equity), and EPS $5.06. As the number of global stores had increased to 716, both consoled sales revenue and net operating profit had hit record highs, with annual growth rates of 16.97% and 2.46% respectively. La Kaffa’s gross profit margin in 2015 was 56%, 1 percentage point less than 57% of 2014, mainly due to direct selling stores’ revenue has increased its share of the overall revenue. As the revenue growth of direct selling stores has also led to the growth of consoled sales revenue and has significantly infused La Kaffa’s overall profits, this was the major cause of the record-high performance in 2015.

As La Kaffa has been developing new brands since 2014, Wagokoro Tonkatsu Anzu Ginza and Bake Code accounted for more than 20% of the overall revenue in 2015. As La Kaffa focuses on direct selling stores for developing new brands, these stores accounted for about 40% of the overall revenue. In addition, in 2015, La Kaffa’s franchise fees (including franchise fees and royalties), as well as raw material sales accounted for 15% and 45% of the overall revenue respectively.

Today (14th), the Board of La Kaffa passed the resolution to approve the 2015 annual earning distribution proposal, which would distribute the cash dividend of $4.0 and stock dividend of $1.5, with the total up to $5.5, and each dividend distributed is higher than each EPS in value. According to La Kaffa’s closing price today, $87.4, its cash yield rate was up to 4.58%.

La Kaffa stated that, in 2016, the number of the group’s global stores would continue to increase. On one hand, by adopting the development concept, “the strongest leads the new”, Chatime, which had achieved a success in the international market, would be the core to be leveraged to lift other brands, so that in a long run, brands can collectively boost sales. On the other hand, the food brands with high per customer transaction would be the main focus of development. In 2016, Wagokoro Tonkatsu Anzu Ginza would continue to expand seven stores, and would enter markets overseas. In addition, the new brand, Duan Chun Zhen Beef Noodle, had opened in Vieshow Cinema Xinyi, Taipei, on March 4th and would be opened in Taichung. Both would hopefully advance La Kaffa’s operating scale.

La Kaffa pointed that the depreciation of store rental and improvement of Wagokoro Tonkatsu Anzu Ginza’s stores in malls would take 1.5-2.5 years in average to be amortized. As stores of Wagokoro Tonkatsu Anzu Ginza opened by La Kaffa in 2014 would amortize their depreciations one by one, and Wagokoro Tonkatsu Anzu Ginza widely expanded in the second half of 2015, it was expected that this brand would start to infuse profits into the group in 2017. La Kaffa stated that as there were still long queues in front of the stores during non-dining time, they were confident that Wagokoro Tonkatsu Anzu Ginza would be one of the stable sources of profits.

La Kaffa stated that as both the number of all stores and the number of direct selling stores had increased in 2015, leading to the fact the both the consolidated sales revenue and net operating profit hit record highs, the group would continue the strategy to expect the growth of revenue in 2016. Furthermore, as the depreciation of direct selling stores opened in the last two years would be amortized one by one in the second half of 2015, profits of these stores would start to grow and might help the growth of profits exceed that of revenue of La Kaffa.

La Kaffa’s 2015 financial statement comparison table. Unit: NT$1,000; %

Note: La Kaffs International’s final capitals of 2014 and 2015 were NT$235 million and NT$279 million respectively.

 

2015

2014

YoY

Consolidated sales revenue

1,651,321

1,411,727

16.97%

Net operating profit

155,011

151,287

2.46%

Net profit after tax (shareholder’s equity)

139,087

134,144

3.68%

EPS

5.06

5.44