SINGAPORE (Feb 13): Jumbo Group reported a 15.7% rise in 1Q19 earnings ended Dec to $2.4 million from a year ago on lower share of loss of associates.
Revenue for 1Q19 dipped 1.5% to $35.5 million due mainly to the closure of underperforming outlets in Singapore.
Cost of sales, which comprised raw materials and consumables used, decreased 3.4% to $12.9 million in 1Q19, in line with the decrease in revenue.
Employee benefits expense decreased 1.1% to $11.2 million. Operating lease expenses decreased 7.2% to $3.3 million mainly due to the closure of underperforming outlets. Utilities expenses increased 7.3% to $0.9 million, mainly due to higher electricity and gas prices in Singapore and increase in the number of outlets in China.
Gross profit margin was higher at 63.7% in 1Q19 compared to 63% in 1Q18, mainly due to higher franchise income.
Share of results of associates narrowed 80.5% to a loss of $0.1 million in 1Q19 compared with a loss of $0.2 million in 1Q18.
Jumbo said headwinds such as operating cost pressures and keen competition are expected to continue to persist in the year ahead.
Plans are also underway for one Teochew cuisine restaurant and two more Tsui Wah Hong Kong-styled Cha Chaan Teng outlets in Singapore.
Shares in Jumbo closed 0.5 cent lower at 39.5 cents on Wednesday.
