Jumbo sees 52% jump in second-half profit to $6.7 million
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The seafood restaurant operator said it remains “cautiously optimistic” for the next 12 months.
PHOTO: JUMBO GROUP
Uma Devi
SINGAPORE – Seafood restaurant operator Jumbo Group on Nov 28 reported earnings of $6.7 million for the second half of the fiscal year ended September, up 52 per cent from net profit of $4.4 million in the year-ago period.
The stronger showing in the second half pushed the group’s full-year earnings to $14.6 million, a turnaround from its net loss of $91,000 in the previous year.
The board of directors has recommended a final dividend of one cent per share, subject to shareholder approval at the upcoming annual general meeting. No final dividend was paid out in financial year 2022. The pay-out date for the dividend will be announced later.
Revenue for the second half rose 40.7 per cent to $92.8 million, from $66 million. The group attributed its stronger top-line figures for the six-month and full-year periods chiefly to the increase in revenue from its local operations on the back of the easing of pandemic-related measures.
While Jumbo’s revenue from the sale of food and beverages increased, revenue from franchise income fell because there was no new franchise outlet in financial year 2023, the company said.
The sustained recovery, coupled with the strategic conversion of the group’s SuiYi Gastrobar at The Riverwalk into a Jumbo Seafood outlet in January, pushed up the group’s revenue from Singapore operations by 46.7 per cent to $78.2 million in the second half.
In China, second-half revenue rose 15.3 per cent to $12.7 million due to the end of the country’s zero-Covid-19 policy in December 2022. In Taiwan, Jumbo’s top-line contributions rose 17.5 per cent to $1.9 million.
Cost of sales from raw materials and consumables was up 46.5 per cent at $32.6 million in the second half. This was in tandem with the increase in revenue, the company said.
Jumbo said it remains “cautiously optimistic” for the next 12 months, barring unforeseen circumstances. Despite the revenue growth, the group said it remains mindful of challenges arising from increased operational costs from items such as raw materials, labour and utilities.
Jumbo’s chief executive Ang Kiam Meng said: “In these uncertain times, Singapore is resilient despite global turbulence. However, caution is needed due to the volatile global economy, especially recent issues in China.
“As we navigate this uncertain landscape, we stay vigilant and prepared for potential challenges.”
In a separate announcement on Nov 28, Jumbo said its chief financial officer Tay Peng Huat has resigned to “pursue personal interests and other opportunities”. He has held the post since 2014.
Shares of Jumbo closed one cent, or 3.7 per cent, higher at 28 cents on Nov 29. THE BUSINESS TIMES
