China outlets help Jumbo double profit in Q3

Chinese diners tucked into Singapore-style seafood in a big way, and helped sizzle Jumbo Group's third- quarter earnings. The firm, famous for its spicy chilli crabs, doubled its net profit for the quarter ended June 30, to $3.4 million, over the same period last year.

In a filing with Singapore Exchange on Friday night, the Catalist-listed company reported revenue of $32.7 million, a 13.8 per cent increase over a year ago.

The company attributed the lift in revenues to its two new restaurants in Shanghai, as well as overall increases in revenues in its other restaurants. Its Raffles City Shanghai outlet opened in August last year, while its restaurant in the Shanghai International Finance Centre opened in January this year.

The popular restaurant group turned out a solid quarter despite increased cost of sales, which rose by 13.6 per cent. Operating lease expenses also increased by 9.8 per cent to $2.8 million, while employee benefit expenses went up by 12.1 per cent to $9.8 million.

  • AT A GLANCE

  • NET PROFIT

    $3.4 million (+101%)

    REVENUE

    $32.7 million (+13.8%)

"The group has turned in a commendable set of results for the latest financial quarter, despite a tepid economic environment and pressure on operating costs," said Mr Ang Kiam Meng, chief executive officer and executive chairman, in a statement. "Looking ahead, the group's overseas operations are expected to grow and contribute positively to the group."

Jumbo has 14 eateries under five restaurant brands in Singapore, as well as three eateries in China.

It launched its initial public offering in October last year, raising $37.2 million in proceeds.

At a press conference then, Mr Ang said that the company intended to use the funds to open at least four new outlets over the next 24 months, with a focus on China.

It has used $10 million for working capital so far, it said on Friday.

The company posted slightly higher earnings per share at 0.5 cent, up from 0.3 cent for the same period a year earlier.

Net asset value came in at 9.5 cents per share, up from 8.9 cents.

It shares closed down 0.5 cent on Friday, at 67 cents.

A version of this article appeared in the print edition of The Straits Times on August 15, 2016, with the headline 'China outlets help Jumbo double profit in Q3'. Print Edition | Subscribe