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[SINGAPORE] Restaurant operator Jumbo Group reported a 10.6 per cent decline in profit to S$7.9 million for the six months ended March 31, down from S$8.9 million in the year-ago period.
Its revenue increased by 0.3 per cent from $97.1 million to $97.3 million in the first half of FY2025. This was mainly contributed by revenue from its South Korea operations, the group said in a bourse filing on Friday (May 9).
However, Jumbo noted that heightened competition in the local food and beverage sector, as well as weak consumer confidence and cautious spending in China, continued to affect dining demand. This affected revenue by 1.1 per cent locally and 2.5 per cent in China, respectively.
Meanwhile, cost of sales, which comprised raw materials and consumables, increased by 2.8 per cent and was primarily driven by higher prices of key ingredients amid ongoing supply chain volatility.
Operating expenses also increased, driven by additional headcount, wage adjustments, and higher depreciation expenses arising from new leases, the opening of new outlets, and the refurbishment of existing ones.
Jumbo’s board of directors has recommended an interim cash dividend of S$0.005 per share.
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In Singapore, the group’s performance continued to reflect intense competition in the F&B sector, although this was partially offset by a recovery in tourism. While it has rebounded significantly from pandemic lows, the group noted that recent trends indicate a moderation in visitor arrivals and tourist spending.
Despite these headwinds, Jumbo stated that it “continues to strengthen its market position by aligning with evolving consumer preferences and enhancing its value proposition within Singapore’s competitive dining landscape”.
Internationally, the group said it remains “focused on optimising operations and pursuing growth opportunities in markets supported by favourable long-term demographic trends and an expanding demand for quality dining experiences”.
Therefore, Jumbo remains “cautiously optimistic” for the next 12 months, barring unforeseen circumstances.
Group CEO Ang Kiam Meng said: “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.”
Shares of Jumbo gained 6 per cent or S$0.015 to S$0.265 on Friday before the announcement.
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