Jumbo Group FY2019 net profit rises 6% to S$11.7m

SEAFOOD restaurant operator Jumbo Group saw net profit rise 5.9 per cent to S$11.7 million for the full year ended Sept 30, 2019 despite a marginal decrease in revenue.

While turnover dipped 0.1 per cent to S$153.6 million, the group's cost-control measures led to gross profit rising 1.4 per cent to S$97.7 million.

The group recorded an estimated loss of S$1.2 million in revenue due to a four-week renovation at the Jumbo Seafood Gallery outlet. Despite this, revenue from its Singapore operations rose S$4 million due to two new Jumbo Seafood restaurants, a new Zui Yu Xuan Teochew Cuisine restaurant and a new Chao Ting Teochew Pao Fan outlet. This was offset by a decrease in revenue of S$4.1 million from its restaurants in China.

Other income fell 11.3 per cent to S$2.4 million. It took a hit due to lower payment from government credit schemes, an absence of writeback of impairment loss of associate and higher fair-value loss in investments at fair-value through profit or loss.

Despite an increase in the number of restaurants operated by Jumbo, employee benefits expense dipped 0.6 per cent to S$47.2 million due to better manpower productivity, said the group.

Operating lease expense also inched lower, falling 1.3 per cent to S$14.1 million mainly due to closure of restaurants.

Earnings per share was 1.8 Singapore cents, marginally higher than the earnings per share of 1.7 cents a year ago.

During FY2019, Jumbo opened nine new outlets under various brands in several cities.

Jumbo said that despite continued headwinds such as operating cost pressures and competition, the group is confident that it will be able to navigate these challenges and remain stable.

The Singapore operations are expected to remain as the group's foundation in its earnings growth, with more new restaurants in the pipeline. Jumbo also plans to add new franchised Jumbo Seafood restaurants in Thailand, Vietnam and China in the next 12 months.

The company has declared a final dividend of 0.7 Singapore cent per share, unchanged from a year ago. It had declared an interim cash dividend of 0.5 Singapore cent per share for the half-year, which was paid in June. The total dividend payout amounts to about 66 per cent of the group's full-year profit.

Jumbo shares closed flat at S$0.37 on Tuesday.