RESTAURANT operator Jumbo Group : 42R 0% on Tuesday (Nov 28) reported earnings of S$6.7 million for the second half of the fiscal year ended September, up 52 per cent from its net profit of S$4.4 million in the year-ago period. 

On a per-share basis, this translated to earnings of S$0.01 from S$0.007 in H2 last year.

The stronger showing in H2 pushed the group’s full-year earnings to S$14.6 million, a turnaround from its net loss of S$91,000 in the previous year. 

The board of directors has recommended a final dividend of S$0.01 per share, subject to shareholder approval at the upcoming annual general meeting. No final dividend was paid out in FY2022. The pay-out date for the dividend will be announced later.

Revenue for H2 was up 40.7 per cent to S$92.8 million, from S$66 million. The group attributed its stronger top line figures for the six-month and full-year periods chiefly to the increase in revenue from its local operations on the back of the easing of pandemic-related measures. 

While Jumbo’s revenue from the sale of food and beverages increased, revenue from franchise income fell because there was no new franchise outlet in FY2023, the company said. 

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The sustained recovery, coupled with the strategic conversion of the group’s SuiYi Gastrobar at The Riverwalk into a Jumbo Seafood outlet in January, pushed up the group’s revenue from Singapore operations by 46.7 per cent to S$78.2 million in H2. 

In China, H2 revenue rose 15.3 per cent to S$12.7 million due to the end of the country’s zero-Covid policy in December last year. In Taiwan, Jumbo’s topline contributions rose 17.5 per cent to S$1.9 million. 

Cost of sales from raw materials and consumables was up 46.5 per cent to S$32.6 million in H2. This was in tandem with the increase in revenue, the company said. 

Jumbo said that it remains “cautiously optimistic” for the next 12 months, barring unforeseen circumstances. Despite the revenue growth, the group added that it remains mindful of challenges arising from increased operational costs from items such as raw materials, labour and utilities. 

Jumbo’s chief executive Ang Kiam Meng said: “In these uncertain times, Singapore is resilient despite global turbulence. However, caution is needed due to the volatile global economy, especially recent issues in China. As we navigate this uncertain landscape, we stay vigilant and prepared for potential challenges.” 

In a separate announcement on Tuesday, Jumbo said that its chief financial officer Tay Peng Huat has resigned to “pursue personal interests and other opportunities”. He has held the post since 2014.

Shares of Jumbo gained 3.7 per cent or S$0.01 on Wednesday to S$0.28, following the announcement of the results late Tuesday evening.