What Investors Should Know About Jumbo Group Ltd’s Growth Strategy?

JUMBO Group Ltd (SGX: 42R) is a food and beverage company that was listed about two years ago.

Famous for its chilli crab served by JUMBO Seasfood, the company also operates a wide range of different brands such as JPOT-Hotpot Singapore Style, NG AH SIO Bak Kut The, Chui Huay Lim Teochew Cuisine, J Cafe-Singapore’s Local Delights, Singapore Seafood Republic, and JUMBO Catering.

As investors or potential investors of this company, we might want to know how the company can continue to grow.

In this article, we will share a number of slides from the company’s corporate presentation recently that might give us some hints.

How to grow

Source: Jumbo Corporate Presentation (May 2017)

Here, we see that Jumbo aims to grow through three main strategies – new outlets, forming partnerships/franchising and establish corporate headquarters and central kitchen to support future growth in outlets.

Where to grow

Source: Jumbo Corporate Presentation (May 2017)

The above is a quick summary of the company’s outlet expansion plans in the next two to three years.

What we can see here is that the company has plans to open between four to six Jumbo outlets in Singapore and China in the next two to three years. In fact, the first outlet in Beijing commenced operations in July.

Source: Jumbo Corporate Presentation (May 2017)

In addition, the company has plans to form other partnerships in some of the areas above. For example, the first franchised JUMBO Seafood restaurant began operations in Ho Chi Minh City, Vietnam in May 2017.

Other sources of income

Source: Jumbo Corporate Presentation (May 2017)

Lastly, the company also plans to grow revenues through non-restaurant activities.

Key takeaway:

In summary, Jumbo has formulated a plan to grow its business in the next three years. If the company should execute well, it’s likely that the company could have higher profits in the coming years.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.