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Jumbo Group posts 23.8% fall in FY18 profit

CHILLI crab restaurant chain Jumbo Group on Wednesday reported a 23.8 per cent fall in net profit for its fiscal 2018, as the group digested its expansion of the Jumbo Seafood chain in China and an addition of the franchise to operate Hong Kong's Tsui Wah Cha Chaan Teng in Singapore.

Net profit for the 12 months ended Sept 30, 2018 stood at S$11 million, down from S$14.5 million a year ago. This comes despite a 5.5 per cent lift in revenue to S$153 million, as expenses rose at a quicker pace. 

Earnings per share stood at 1.7 Singapore cents, down from 2.3 Singapore cents. 

"The group’s FY2018 results reflect the gestation period of our expansions, locally and regionally," the group said in its results statement.

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The group declared a dividend of 0.7 Singapore cents per share.

Jumbo said it intends to open two new Jumbo Seafood restaurants, one new Teochew cuisine restaurant and at least two more Tsui Wah Cha Chaan Teng outlets in Singapore in the next 12 months.

"We will continue to explore suitable opportunities to expand our food and beverage business through the opening of new outlets, joint ventures and/or strategic alliances with partners who can strengthen our market position and add value to the group."

Shares of Jumbo closed on Wednesday at S$0.405, down half a Singapore cent.