New restaurant openings added to the seafood operator’s expenses.
Jumbo Group’s net profit for the third quarter dropped 24.8% to SG$1.7m, as expenses rose largely due to the opening of new restaurants.
According to its results announcement, the Singapore-listed seafood restaurant operator saw revenue rose 0.8% year-on-year to SG$36.4m for the aforementioned period as it opened three new restaurants in Singapore: Jumbo Seafood at Jewel Changi Airport, Zui Yu Xuan Teochew Cuisine and Chao Ting Teochew Pao Fan at Far East Square.
Revenue performance was affected by the Jumbo Seafood restaurant at The Riverwalk, which was closed for a month due to renovations.
Employee benefits meanwhile increased 1.1% SG$11.5m, operating lease expenses rose 4.3% to SG$3.6 million, whilst utilities were up 10.8% to SG$1m.
The group said it expects to continue to face headwinds such as operating costs and tough competition across its Southeast Asian markets. They, however, expect new restaurants to bolster its market position in Singapore, which they call “the bedrock of earnings growth”.
Looking at the first nine months, Jumbo’s net profit was at SG$9.1m, up 6.2% YoY. Revenue was down 0.4% SG$113.1m.
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