Iconic Singapore chili crab restaurateur JUMBO Group reported on Wednesday its fiscal first quarter net profit rose 15.7 percent on-year to S$2.43 million.
Revenue for the quarter ended 31 December fell 1.5 percent on-year to S$35.46 million, mainly on the closure of underperforming outlets in Singapore, it said in a filing to SGX after the market close on Wednesday.
The gross profit margin rose to 63.7 percent in the first quarter, from 63.0 percent in the year-ago period, mainly on higher franchise income, JUMBO said.
“I am pleased that JUMBO continues to deliver a resilient financial performance, even as we make headway in strengthening our footprint in the region,” Ang Kiam Meng, CEO and executive director of JUMBO, said in the statement.
“The successful launch of our newly-opened JUMBO Seafood outlet at ION Orchard has set a positive tone for the start of FY2019, and I am excited about our expansion plans for the year ahead,” he said.
During the quarter, Jumbo opened franchised JUMBO Seafood restaurants in Fuzhou, China, and Bangkok, Thailand, as well as opening the ION Orchard location, it said. That brought the total number of JUMBO Seafood restaurants in Asia to 17, it said.
In its outlook, JUMBO said it expected operating cost pressures and competition to persist.
“While some of these challenges are industrywide and invariably affect the F&B sector, JUMBO believes it will be able to navigate these challenges successfully, and remains confident that its business will remain stable over the next year,” it said. “JUMBO will continue to focus on cost efficiency, and to raise productivity, efficiency and lower operating costs.”
JUMBO said it also plans one Teochew cuisine restaurant and two more Tsui Wah Hong Kong-styled “Cha Chaan Teng” outlets in Singapore.