Jumbo posts 72% decline in half-year profit to S$2.1m amid virus outbreak

RESTAURANT operator Jumbo on Thursday recorded a 71.5 per cent year-on-year fall in half-year net profit to S$2.1 million amid the novel coronavirus outbreak, calling the past few months the "most challenging" since the group was established 33 years ago. 

Revenue fell 13.1 per cent on the year to S$66.7 million for the half year ended March 31, as takings declined across its key markets of Singapore, China and Taiwan. 

Gross profit margin for the period was also compressed to 62.6 per cent, from 64.2 per cent previously, as Jumbo sought to maintain market share and retain local customers with promotional campaigns and discounts in February and March. 

To cut costs during the pandemic, the group also implemented non-bonus accruals, a "minimal use" of casual labour and shorter operating hours. These resulted in employee benefits expenses decreasing by 3.6 per cent year on year to S$22.8 million in H1.

Jumbo said: "Adapting to such operating environment changes and restrictions, we have intensified our digital and online presence, and offered a wider range of products and services, such as bento sets and deliveries via multiple platforms to capture a larger customer base in a very competitive market. All operating expenses are closely monitored and managed, especially labour costs and rental."

In Singapore, the group has temporarily closed 10 of its 16 outlets amid the nation's circuit-breaker period. Revenue has improved gradually since the circuit breaker started on April 7, and landlords are providing varying amounts of rental rebates for April and May, Jumbo said. 

However, it predicts that the bottom line will still be "significantly lower" than the same period last year.