Jumbo posts 15.7% higher Q1 net profit at S$2.4 million

MULTI-DINING concept food and beverage establishment Jumbo Group posted a 15.7 per cent improvement in its first quarter net profit at S$2.4 million.

However, revenue of the Catalist-listed group dipped 1.5 per cent year-on-year from S$36 million to $35.5 million for the three months ended Dec 31, 2018. The decrease in revenue was due mainly to the closure of under-performing outlets in Singapore, Jumbo announced on Wednesday.

Earnings per share for Q1FY2019 was 0.4 Singapore cent, up from 0.3 Singapore cent in Q1FY2018.

Net asset value per share as at Dec 31 was 10.5 Singapore cents, compared to 10.2 Singapore cents as at Sep 30.

Cost of raw materials and consumables decreased by 3.4 per cent from S$13.3 million to S$12.9 million in Q1FY2019, in tandem with the decrease in revenue. Gross profit margin was higher at 63.7 per cent in the quarter as compared to 63 per cent in the corresponding period a year ago, mainly due to higher franchise income.

Group chief executive officer and executive director of Jumbo Ang Kiam Meng commented: "I am pleased that Jumbo continues to deliver a resilient financial performance, even as we make headway in strengthening our footprint in the region. The successful launch of our newly-opened Jumbo Seafood outlet at Ion Orchard has set a positive tone for the start of FY2019, and I am excited about our expansion plans for the year ahead."

Headwinds such as operating cost pressures and keen competition are expected to continue in the year ahead. While some of these challenges are industry-wide and invariably affect the F&B sector, Jumbo believes it will be able to navigate these challenges successfully, and remains confident that its business will remain stable over the next year.