Jumbo Group's FY15 profit falls 8% to S$10.6m

Singapore

CHILLI crab restaurant Jumbo Group said on Friday it is on target to open a third restaurant in Shanghai in January, but warned that the food and beverage (F&B) industry remains challenging.

The comments came as it reported an 8 per cent fall in full-year net profit as "other operating expenses" rose S$1.6 million due mainly to a S$1 million rise in professional fees relating to restructuring and preparation work for its initial public offering. It was listed this month.

Net profit for the 12 months ended Sept 30 stood at S$10.6 million, compared to the preceding year's S$11.5 million. This translated to earnings per share of 1.7 Singapore cents, compared to 1.8 Singapore cents. Revenue rose 9.2 per cent to S$123 million, due mainly to increased revenue contributions from new outlets that were opened towards the end of fiscal 2014. It had a full-year revenue contribution from its Jumbo Seafood outlet in Shanghai.

"The food and beverage industry will continue to remain challenging," it said, adding that it would continue to cut costs and raise efficiency. "The group will continue to explore for suitable opportunities to expand our network of F&B outlets and business through opening new outlets, acquisitions, joint ventures or strategic alliances with partners who can strengthen our market position and add value to our existing business."

Shares of Jumbo closed half a cent lower at S$0.37 on Friday.