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17 Key Numbers For A Deeper Understanding Of JUMBO Group Ltd

JUMBO Group Ltd (SGX: 42R) is well-known for its eponymous seafood restaurants around Singapore that serve the famous chilli crab. Its other brand of restaurants includes JPotNg Ah Shio Bak Kut Teh, Chui Huay Lim Teochew Cuisine and J Cafe. JUMBO Group went public in November 2015.

The company released its annual report for the financial year ended 30 September 2017 (FY2017) recently. Here are some statistics that investors might want to know about from the report.

Financial Figures

Revenue for FY2017 grew 6.1% year-on-year to S$145.1 million, which is a new record. The improvement was largely due to a broad-based increase in revenue from both its Singapore and China operations. The full-year revenue contribution from JUMBO’s third restaurant in Shanghai, China, helped to prop up the top line too. The opening of the newest restaurant in China increases its restaurant count to five in the country.

Revenue contribution from Singapore increased 2.5% to $119.7 million due to higher sales across its portfolio of brands. JUMBO has a total of 15 food and beverage outlets in Singapore.

The firm’s net profit, however, fell from S$15.5 million in FY2016 to S$14.5 million in FY2017.  This was mainly due to the higher cost of goods sold, staff costs and operating lease expenses as compared to the previous year.

Return on equity for the year came in at 22.2%, down from 23.9% seen in FY2016.

The firm generated cash flow from operations of S$11.6 million. With capital expenditure coming in at S$5.9 million, free cash flow of S$5.7 million was raked in for FY2017. In FY2016, higher free cash flow of S$12 million was generated.

Dividend

JUMBO dished out a total dividend of 1.7 Singapore cents for FY2017, unchanged from a year ago. The dividend translates to a dividend payout ratio of 75.4% and a dividend cover of 1.4 times.

Growth Prospects

Looking ahead, the company had this to say:

“We continue to see scope for continued organic growth from our existing F&B outlets in Singapore and overseas, particularly as we build our customer base in new markets and grow other revenue streams. These comprise our retail packs business, catering and event services as well as home delivery services. We are also exploring opportunities to extend the range of our retail products beyond our current offerings.”

It added the following:

“Beyond Singapore and the PRC, we are also actively exploring suitable franchise opportunities to bring our scalable brands into new potential markets, such as Bangkok, Hanoi, Seoul, Hong Kong, Macau and Jakarta.”

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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 Sudhan P doesn’t own shares in any companies mentioned.