Jumbo FY2021 net loss widens to S$11.8m amid Covid-19 restrictions

SEAFOOD restaurant operator Jumbo Group saw its net loss widen to S$11.8 million for its full year ended Sep 30, 2021, from S$8.2 million a year ago.

This was mainly due to the challenging operating environment amid Covid-19 restrictions, particularly in Singapore, Jumbo's biggest market, the group said in a bourse filing on Nov 24.

Loss per share stood at 1.8 Singapore cents for the full-year period, from 1.3 cents a year ago.

Revenue for FY2021 fell 16.2 per cent to S$81.8 million, from S$97.6 million a year ago. Jumbo noted that for FY2020, it still had pre-Covid-19 revenue and profitability to mitigate its financial performance.

No dividend was declared for the full year, unchanged from a year ago.

As the group continued to incur losses due to the challenging operating environment, Jumbo said it was conserving liquidity to support working capital requirements, and carefully assessing growth investments and developments.

Meanwhile, for the second half ended Sep 30, net loss narrowed to S$7.5 million, from S$10.3 million a year ago. Revenue for H2 rose 17.8 per cent to S$36.4 million, from S$30.9 million a year ago.

Jumbo noted that it pivoted some of its Singapore operations to day-to-day fast casual concepts from full-service communal dining concepts, which are less viable under a restricted dining-out environment.

As such, the group closed 3 outlets in the tourist belt, and added 3 Kok Kee Wonton Noodle outlets, with plans for further expansion in the coming months. It also launched retail products including cooking sauces and condiments under a new lifestyle brand in June 2021.

Outside of Singapore, Jumbo's mainland China operations had benefited from stable pandemic conditions, and it also opened a new Jumbo Seafood outlet in Universal Beijing Resort in September last year.

Its Taiwan operations, however, were hit by muted footfall, causing it to shut the Taichung Jumbo Seafood outlet in the same month. It said it will focus on the profitability of its remaining outlet in Taipei, while also exploring a second branch in the city.

As for its franchisees, Jumbo noted that its Ho Chi Minh City, Bangkok and Fuzhou operations are "holding up well". It is also looking at exploring franchise expansion in Vietnam, Cambodia, Dubai and second-tier cities in mainland China.

Group chief executive and executive director Ang Kiam Meng noted that Jumbo is "hardly out of the woods yet" from the Covid-19 pandemic.

However, he said the group will continue to explore means to drive new revenue streams and stay relevant with the market. "Backed by our healthy balance sheet, we are confident to ride through this uncertainty," he added.

Shares of Jumbo closed flat at S$0.305 on Nov 24.