SINGAPORE (Feb 13): Jumbo Group has announced earnings of $2.6 million for the first quarter ended Dec 31, up 26.1% from $2.1 million a year ago on higher revenue.
Revenue rose 5.8% to $32.7 million from $30.9 million in the previous quarter, mainly due to increased revenue contributions from the group’s Jumbo Seafood outlets in Shanghai, China.
Due to higher gross margins from the Shanghai operations, gross profit increased accordingly by 8.1% to $21 million in 1Q17, such that gross profit margin for the quarter was 64.2% compared to 62.9% in the same quarter a year ago.
Cost of sales, comprising raw materials and consumables used, increased by 1.9% to $11.7 million in 1Q17, which was in line with the increase in revenue.
Due to an increase in headcount for Jumbo’s new and existing outlets in Singapore and Shanghai, as well as an increase in staff remuneration within the group, employee benefits expense for the quarter grew by 9.5% to $10.1 million compared to $9.2 million in the previous year.
Operating lease expenses increased by 10.2% to $3.3 million from $3 million in the previous year, mainly due to the leases for the group’s new outlets, existing outlet expansion and new corporate offices in Singapore and Shanghai.
In its Monday aftermarket filing to the SGX, Jumbo says it continues to expect a challenging food and beverage (F&B) industry, but intends to leverage on its brands and talents to stay competitive in the market place while striving to strengthen its brands portfolio for sales and profitability.
“Our pursuit of quality growth overseas continues to pay off as we record yet another strong quarter for our operations in the People’s Republic of China (PRC),” comments Jumbo group CEO, Ang Kiam Meng.
“We will continue to take a calibrated approach in our expansion plans to capture the growing F&B market in major Chinese cities such as Shanghai and Beijing, as well as other regional markets like Vietnam.”
Shares of Jumbo closed 1 cent lower at 72 cents on Monday.
