Restaurant openings sap Jumbo Group profit
Jumbo Group profit fell 24.8 per cent in the third quarter to S$1.7 million (US$1.2 million) as new restaurant openings added to expenses.
The Singapore-listed restaurant group opened three new outlets in Singapore: a Jumbo Seafood at Jewel Changi, along with Zui Yu Xuan Teochew Cuisine and Chao Ting Teochew Pao Fan eateries at Far East Square.
Sales were affected by the closure of the Jumbo Seafood restaurant on Riverwalk for one month during renovations.
Group sales rose by 0.8 per cent to $36.4 million.
For the first nine months of the financial year, Jumbo Group profit was up 6.2 per cent to $9.1 million on revenue down 0.4 per cent to $113.1 million.
The company said in its results announcement that operating costs and tough competition across its Southeast Asian markets will continue to pose a challenge. However, the company expects new restaurants will help strengthen its market position in Singapore, “the bedrock of earnings growth”.