Jumbo Group has reported earnings of $7.9 million for the 1HFY2025 ended March 31, 10.6% lower y-o-y, as the mild increase in revenue was not enough to offset its costs.
Earnings per share (EPS) stood at 1.3 cents, down from 1.4 cents last year.
Revenue for the period inched up by 0.3% y-o-y to $97.3 million mainly contributed by revenue from the group’s operations in Korea. However, this was offset by lower revenue from Singapore and China. Singapore’s revenue fell by 1.1% y-o-y to $84.4 million on the back of higher competition in the food and beverage (F&B) sector, while China’s revenue fell by 2.5% y-o-y to $9.6 million from weak consumer confidence and cautious spending in the country.
Cost of sales, which comprised raw materials and consumables, increased by 2.8% y-o-y to $33.6 million, mainly due to the higher prices of key ingredients. Operating expenses also rose mainly from additional headcount, wage adjustments and higher depreciation expenses on new leases, new outlets and the refurbishment of existing ones.
Gross profit fell by 1% y-o-y to $63.7 million. Gross profit margin fell to 65.5% from 66.3% during the period.
For the 1HFY2025, the group has declared an interim dividend of 0.5 cents per share. This will be paid on or about June 4.
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As at March 31, cash and cash equivalents stood at $38.7 million, up from $22.3 million previously.
Looking ahead, the group says it maintains a “cautious outlook” over the next 12 months and remains committed on sustainable growth.
Even though the group’s performance in Singapore reflects the heightened competition within the F&B sector, the growth in tourism cushioned its numbers. With recent trends indicating a moderation in arrivals and tourist spending, the group says it will align with evolving consumer preferences and enhance its value proposition in a bid to put it above the competition.
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Internationally, the group expects rising geopolitical tensions and uncertainties in global trade to dampen consumer sentiment.
“While global economic uncertainties and trade-related challenges may impact the business environment, Jumbo remains focused on adapting to these headwinds. We are committed to navigating these times with resilience and continuing to strengthen our operations for the long term,” says Ang Kiam Meng, executive chairman and group CEO of Jumbo.
Shares in Jumbo closed 1.5 cents higher or 6% up at 26.5 cents on May 9.
