China expansion boosts Jumbo Group
Singaporean restaurant chain Jumbo Group has announced sales of S$35.8 million for the three-months to June 30, boosted by new outlets in China.
Two new restaurants opened in Beijing and Shanghai, combined with a recently opened venue in Xi’an’s SKP luxury mall, increased revenue for the quarter by $1.8 million comparative to last year’s figures for the corresponding period. The group has also recently launched one of its franchises in Taiwan.
Despite the revenue growth, overall profit attributable to owners of the company showed a decrease of $1.2 million from the same quarter last year, down to $2.2 million. This was attributed to the closure of two outlets in Singapore, rising costs of materials and fresh seafood, and staffing and promotional costs for launching the Chinese stores.
The firm’s gross profit margin was correspondingly lower at 62 per cent during the quarter, compared to 62.7 per cent last year.
The group’s executive director and CEO Ang Kiam Meng said he was heartened the business’s expansion in the region has borne fruit.
“On the domestic front, we see an overwhelming response at the new Tsui Wah outlet at Clarke Quay. This is in line with our strategy to increase the vibrancy of our business and Singapore’s food and beverage landscape. As a growing business, there will be a gestation period as reflected in our latest set of financial results. We are confident that we will be able to produce a sustainable performance as we expand our footprint regionally and strengthen our position.”
The group will continue to expand across the region in the coming year, with new outlets planned for Thailand, Taiwan, China and Singapore.