Restaurateur JUMBO reports fiscal year net profit rose 6 percent

JUMBO Seafood outlet at Singapore’s East Coast ParkJUMBO Seafood outlet at Singapore’s East Coast Park

JUMBO Group reported Tuesday its fiscal year net profit increased 5.9 percent on-year to S$11.67 million as Singapore operations’ revenue rose on new outlet openings and as costs were better controlled.

Revenue for the fiscal year ended 30 September slipped 0.1 percent on-year to S$153.63 million, the iconic chili crab restaurateur said in a filing to SGX.

“While the group continues to extend its geographical footprint, we are guided by the principle of sustainable growth,“ Ang Kiam Meng, executive director and CEO, said in the statement, “and recognize the need to prudently balance the costs with our expansion plans.”

JUMBO pointed to an estimated revenue loss of S$1.2 million due to a four-week renovation of the JUMBO Seafood Gallery outlet, although overall revenue form the Singapore operations increased by S$4 million, largely on two new JUMBO Seafood restaurants, a new Zui Yu Xuan Teochew Cuisine restaurant, and a new Chao Ting Teochew Pao Fan outlet.

Revenue from restaurants in China fell by S$4.1 million on-year, JUMBO said.

Cost of sales fell 2.5 percent on-year to S$55.7 million on better cost control measures, the company said, adding that helped boost the gross profit margin to 63.8 percent from 62.8 percent a year earlier.

Employee benefits expenses fell 0.6 percent on-year to S$47.2 million, despite a higher number of restaurants, due to better worker productivity, the filing said.

The share of loss of associates surged to S$824,000 from S$115,000 a year earlier, mainly on the gestation period of a new restaurant in South Korea and on underperforming JUMBO Seafood restaurants in Taiwan, the filing said.

JUMBO declared a final dividend of 0.7 Singapore cent a share, which combined with the interim dividend of 0.5 Singapore cent a share brought the total for the year to 1.2 Singapore cents. The dividend was unchanged on-year.

In its outlook, JUMBO said it was confident it would be able to navigate challenges from operating cost pressures and competition.

“The Singapore operations is expected to remain as the group’s foundation in its earnings growth, as it looks towards strengthening its position with the opening of new restaurants under its belt,” JUMBO said.

JUMBO has expanded its namesake seafood restaurants’ overseas footprint to Fuzhou, China, as well as Thailand and South Korea. The Bangkok outlet opened in November 2018, and in Seoul, the Gangnam outlet opened in July and the Ilsan outlet opened in October. It also has four Ng Ah Sio Bak Kut Teh (NASBKT) outlets in Taiwan,

JUMBO said it planned to introduce the NASBKT brand to China and add more outlets in Taiwan. In addition, it said it planned new franchised JUMBO Seafood outlets in Thailand, Vietnam and China in the next 12 months.

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