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Jumbo expects to post net loss in FY20; results due out by Nov 29
SEAFOOD restaurant group Jumbo Group on Monday said that it expects to report a net loss for FY20, following a preliminary review of its financial results for the fiscal year ended Sept 30, 2020.
This is because the Covid-19 pandemic has severely impacted the global economy; and correspondingly, the group's business operations across its key markets in Singapore and China.
"The net loss is mainly due to a substantial decline in revenue due to much reduced dine-in crowds in restaurants, unprecedented pandemic containment measures, including border controls, travel bans, lockdowns/circuit breaker equivalent measures and social distancing measures; less than proportionate decline in key expenses; and impairment losses on certain group assets," it said in a disclosure to the Singapore Exchange.
The board expects the group's financial performance to continue to be affected depending on the duration of the pandemic, when borders will reopen for general travel, and also the lifting of social distancing measures to boost dining-in capacity and demand.
Meanwhile, the management has implemented cost and risk management measures while setting aside reserves to build up its capabilities for the future, it said.
Jumbo Group will release its FY20 financial results by Nov 29, 2020.