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JUMBO posts 6.7% drop in FY profit

JUMBO Group Limited reported a 6.7 per cent drop in net profit for the full year ended Sept 30 to S$14.47 million as higher expenses and lower other income offset the rise in revenue.

A 6.1 per cent increase in revenue to S$145.1 million for the year took place on the back of an overall increase in revenue from JUMBO's operations in both Singapore and China, as well as a full-year revenue contribution from the group's third JUMBO Seafood restaurant in Shanghai.

"The F&B industry is expected to continue to be challenging due to pressure on operating costs and keen competition," JUMBO said on Friday.

Going forward, the group will continue to focus on lowering operating costs and improving productivity and efficiency, it added.

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The restaurant group said that it will also continue to explore suitable opportunities to expand its network of F&B outlets and business through the opening of new outlets, acquisitions, joint ventures or strategic alliances with partners.

This month, JUMBO announced the setting up of a new branch office in Shanghai in conjunction with the opening of its fourth JUMBO Seafood outlet in the city's L'Avenue Mall, Hongqiao. The new outlet, the fifth JUMBO Seafood outlet in China, is slated to open in December.

Outside of China, JUMBO has entered into a joint venture agreement with local strategic partner Baipin Co Ltd to open at least eight JUMBO Seafood outlets in Taiwan.

The board of directors has proposed a tax-exempt final cash dividend of 0.5 cents and a tax-exempt special dividend of 0.7 cents. The proposed dividends are subject to shareholders' approval at the upcoming annual general meeting.

Including the tax-exempt interim dividend of 0.5 cents per share, the group will pay out a total dividend payout of 1.7 cents per share for fiscal 2017, amounting to about 75.4 per cent of the group's fiscal 2017 net profit.