Jumbo Group 1HFY2024 earnings up 11.9% y-o-y

Jumbo plans to pay an interim dividend of 0.5 cent

Jumbo Group has reported earnings of $8.9 million for its 1HFY2024, up 11.9% y-o-y. Revenue in the same period ended March was up 13% to $97.1 million.

The company, which operates a chain of restaurants under different brands, enjoyed a pick up in dining, including from tourists.

Its Singapore business enjoyed a 21.5% y-o-y jump in revenue to $85.3 million.

Its two key brands, Jumbo Seafood and Zui Teochew Cuisine have returned to pre-pandemic business operations and performances, with a lift from festive season dining out.

The company's Riverwalk outlet, a popular spot for tourists, enjoyed growth too. 

However, its business in China did not do as well. Revenue was down 26.2% y-oy to just $9.9 million. It shut down an outlet last November.

According to Jumbo, the weak economy in China, largely "influenced" by the "struggles" of the real estate industry, is posing a challenge to its business there.

"To address these economic challenges, our group has
undertaken strategic measures to optimise operations and enhance efficiency in line with the prevailing market conditions," the company says.

Jumbo plans to pay an interim dividend of 0.5 cent per share. It did not pay a dividend in the year-earlier period.

Going forward, despite healthy revenue growth here, the company is mindful of challenges including higher materials and manpower costs.

Barring any unforeseen circumstances, Jumbo is "cautiously optimistic" about its business performance for the coming financial year.

Jumbo Group shares last traded at 25 cents. It is down 10.71% year to date.