Jumbo Group has reported earnings of $13.7 million for the FY2024 ended Sept 30, 1% lower y-o-y. The food and beverage (F&B) group reported 2HFY2024 earnings of $4.75 million, 32.6% lower y-o-y.
Revenue for the FY2024, however, stood at a record of $190.4 million, 6.5% higher y-o-y, mainly due to the recovery of businesses, social events and tourism in Singapore and offset by weaker revenue from China.
Revenue for Jumbo’s Singapore operations grew by 12.6% y-o-y to $167.1 million while revenue from Jumbo’s Chinese operations fell by 27.6% y-o-y to $18.9 million during the year.
In line with the higher revenue, gross profit was up by 6.8% y-o-y to $125 million. Gross profit margin improved by 0.2 percentage points y-o-y to 65.7%.
Despite the higher revenue, Jumbo’s bottom line dipped due to higher overall operating expenses, which includes higher employee benefits expenses from higher headcount, salary adjustments and other operating expenses such as cleaning services, repairs and maintenance, and credit card and delivery service commissions.
A final dividend of 0.5 cents per share was declared, down from the 1 cent dividend declared during the same period last year.
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Cash and cash equivalents as at Sept 30 stood at $46.4 million.
Looking ahead, Jumbo says it remains optimistic over the resurgence of consumer demand and evolving preferences in the F&B industry. It adds that it will fortify its focus in Singapore, especially within the local F&B scene and with broader demand driven by tourism.
In addition, the group says it plans to expand into new markets across Southeast Asia.
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“We are thrilled to achieve record revenue for the second consecutive year, a milestone that highlights the dedication of our team and the continued trust of our customers, for which we are deeply grateful,” says Ang Kiam Meng, executive director and group CEO of Jumbo.
“This achievement reflects the strength of the foundation we have built, enabling us to navigate rising operational costs and ongoing global economic uncertainties,” he adds. “As we look ahead, we remain focused on adaptability, prudent resource management, and vigilance in addressing challenges, ensuring we are well-positioned for sustained growth and success in the year to come.”
Shares in Jumbo closed flat at 27.5 cents on Nov 29.
