SINGAPORE (Feb 14): Jumbo Group, the F&B establishment, announced 1Q18 earnings dropped by nearly a fifth to $2.10 million, compared to $2.62 million in 1Q17.
Revenue was 9.3% higher at $35.7 million from $32.7 million a year ago, due to higher contributions from the group’s operations in Singapore and China.
Gross profit for the quarter was 6.7% higher at $22.4 million compared to $21.0 million last year.
Other income increased by 74.9% to $0.66 million from $0.38 million in the previous year, largely due to franchise income of $0.2 million from the group’s new franchisee in Taiwan..
Employee benefit expense rose 12.2% to $11.3 million from $10.1 million last year, due to an increase in the number of employees for the group’s new outlets in Shanghai and Beijing, as well as an overall increase in headcount and remuneration to support its regional expansion.
Operating lease expenses were 8.3% higher at $3.52 million compared to $3.25 million in the previous year, mainly due to the leases for new outlets in Shanghai and Beijing, as well as expansion of the group’s PRC corporate office.
Other operating expenses also increased by 18.2% to $3.51 million from $2.97 million last year, mainly due to the increase in the number of outlets and the expansion of the group’s China corporate office, coupled with pre-operating and promotional expenses for its fourth Jumbo Seafood outlet in Shanghai, which opened in Nov 2017, as well as marketing expenses relating to the Group’s 30th Anniversary celebrations.
See: Fourth Jumbo Seafood opens in Shanghai
During the quarter, the group incurred a loss from share of results of associates of $231,000, compared to a gain of $14,000 a year ago, due mainly to pre-operating and promotional expenses incurred by its franchisee in Taiwan prior to the opening of its first franchised Jumbo Seafood outlet in Taiwan in Dec 2017.
Ang Kiam Meng, executive director and CEO of Jumbo says, “JUMBO’s operations in Singapore and the PRC have continued to perform well and our Group has made further headway in growing our overseas presence. We are excited and positive about our growth as we seek to expand our presence in existing and new markets.”
Shares in Jumbo closed at 57 cents on Wednesday
