SINGAPORE (Aug 8): Jumbo Group posts a slight 1.1% decline in earnings to $3.37 million for the 3Q ended June, from $3.40 million a year ago, on higher expenses.
Revenue grew 6.4% in to $34.8 million in 3Q17, from $32.7 million a year ago, on higher contributions from Jumbo’s operations in Singapore and China.
However, the higher revenue was offset by higher expenses on employee benefits, operating lease, and depreciation.
Employee benefits expense increased by 5.5% to $10.3 million during the quarter, mainly due to an increase in headcount and remuneration within the group.
Operating lease expenses increased by 24.5% to $3.5 million in 3Q17, from $2.8 million a year ago. This was mainly due to the leases for Jumbo’s new outlets, outlet expansion, and new corporate offices in Singapore and Shanghai.
Depreciation expense increased by 29.8% to $1.2 million in 3Q17, mainly due to the additional depreciation for its new outlets and corporate offices.
As at end June, cash and cash equivalents stood at $48.1 million.
Looking ahead, Jumbo says it plans to expand its brands to other major cities in Asia, and pursue franchising opportunities to diversify and grow its business offerings.
“We look forward to extending Jumbo’s footprint in the region with the opening of new Jumbo Seafood outlets in major Chinese cities, as well as expanding our other restaurant brands in major Asian markets over the next few years,” says Jumbo’s executive director and group CEO Ang Kiam Meng.
Shares of Jumbo closed flat at 59 cents on Tuesday.
