SINGAPORE: The Jumbo Group of food and beverage outlets has posted a profit after tax of S$2 million for the three-month period ended on Dec 31, 2015. This is slightly below the S$2.1 million the group posted in Q1 FY2015.
In a media release on Thursday (Feb 2), the Singaporean company most famous for its Jumbo Seafood chain of restaurants said net profit decreased by 4.9 per cent, or about S$0.1 million for the first quarter of the 2016 financial year due to IPO expenses and pre-operating expenses for the third Jumbo Seafood restaurant in Shanghai, China.
Jumbo Group debuted on the Singapore Exchange's Catalist bourse in November 2015.
"Excluding one-off IPO expenses of S$0.7 million, profit after tax would have been approximately S$2.7 million representing an increase of 25.5 per cent over Q1 FY2015," it said.
Jumbo added that it turned in S$30.9 million in revenue in Q1 FY2016, a 7.6 per cent increase from S$29.7 million in the same time period last year. The group attributed this to a second Jumbo Seafood restaurant in Shanghai, which commenced operations in Aug 2015.
"Going forward, we will leverage on our strengths and channel our resources efficiently to drive profitability. We are focused on increasing productivity and managing expenses, via the improvement of work flow processes and implementation of information technology applications," said Mr Ang Kiam Meng, CEO and Executive Chairman of Jumbo Group.
Jumbo added that conditions for the food and beverage industry are expected to "remain challenging" due to higher labour costs and rent.
Mr Ang also said the company is on track to fulfil its plan of establishing at least four food and beverage outlets in the China or Singapore within 24 months of its listing.