JUMBO posts fiscal 2Q net profit despite revenue slipping

JUMBO Seafood outlet at Singapore’s Jewel ChangiJUMBO Seafood outlet at Singapore’s Jewel Changi

JUMBO Group reported Tuesday its fiscal second quarter net profit rose 17.6 percent on-year to S$5.02 million amid higher franchise income and the closure of underperforming outlets.

Revenue for the quarter ended 31 March slipped 1.4 percent on-year to S$41.25 million on lower revenue from China operations, partially offset by higher revenue from Singapore and from franchises, the chili crab restaurateur said in a filing to SGX after the market close.

The gross profit margin increased to 64.6 percent in the quarter, compared with 63.4 percent in the year-ago quarter, on the closure of underperforming outlets and on higher franchise income, the filing said.

“Revenue from our Singapore operations and franchises have grown steadily. This underscores the success of our expansion plans and the appeal of our various brands under our portfolio,” Ang Kiam Meng, group CEO and executive director of JUMBO, said in the statement.

“Moving forward, we will continue to take a calibrated approach on our expansion strategy in our pursuit for quality growth in the region,” Ang added.

JUMBO declared a 0.5 Singapore cent dividend for the period, unchanged from a year-earlier.

Jumbo was cautious in its outlook, saying it “expects to continue to face headwinds such as operating cost pressures and keen competition,” the statement said. “While these are industry-wide challenges that invariably affect the F&B sector, the group believes that it will be able to navigate these challenges, and remains confident that its business will remain stable in the next 12 months.”

 

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