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9 Quick Things Investors Should Know About JUMBO Group Ltd’s Latest Earnings

In mid-February, JUMBO Group Ltd (SGX: 42R) released its first quarter earnings update for its fiscal year ending 30 September 2018 (FY2018). As a quick introduction, JUMBO is a restaurant operator that is perhaps most famous for the chili crab served in its JUMBO Seafood chain of seafood restaurants.

Here are nine things investors should know about JUMBO’s latest results:

1. Revenue for the reporting quarter improved by 9.3% year-on-year to S$35.7 million.

2. Gross profit for the quarter increased by 6.7% to S$22.4 million compared to a year ago, driven mainly by the aforementioned revenue growth.

3. The gross profit margin dipped from 64.2% a year ago to 62.7%.

4. But, net profit for the first quarter of FY2018 fell by 22.7% year-on-year to S$2.1 million.

5. Similarly, JUMBO’s earnings per share declined 25% to 0.3 cents.

6. In the reporting quarter, JUMBO generated operating cash flow of S$3.9 million and used S$3.3 million on capital investments and acquisitions.

7. As of 31 December 2017, the company had cash and bank balances of S$51.9 million, and zero debt.

8. In the earnings update, JUMBO mentioned that it had recently entered the Taiwan market through a joint-venture with a Taiwan-based partner. The joint-venture opened a franchised JUMBO Seafood restaurant in Taiwan in December 2017.

9. In its earnings update, JUMBO gave some quick but useful comments on its business landscape:

“The food and beverage (“F&B”) industry is expected to continue to be challenging due to pressure on operating costs and keen competition.

The Group will continue to explore suitable opportunities to expand our network of F&B outlets and business through the opening of new outlets, acquisitions, joint ventures and/or strategic alliances with partners who can strengthen our market position and add value to our existing business.”

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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.