The earnings season just concluded. Given that many companies are reporting their results at the same time, it might be useful to categorise them into three buckets of positive, negative and mixed. In this article, I will look at two companies that have recently reported mixed results.
JUMBO Group Ltd (SGX: 42R) is the first company that I will look at in this article. As a quick introduction, Jumbo Group is famous for its chilli crab served by its namesake restaurant, JUMBO Seafood.
For the full year ended 30 September 2018 (FY2018), Jumbo reported that sales revenue improved 5.5% year-on-year to S$153.0 million. Yet, net profit attributable to owners fell by 23.8% year-on-year to S$11.0 million, mainly due to higher operating costs as a result of the opening of new outlets and expansion of its corporate office. Jumbo has proposed a final cash dividend of 0.7 cents per share. Together with the interim dividend of 0.5 cents per share, total dividend pay-out would be 1.2 cents per share for FY2018.
Ang Kiam Meng, the chief executive of Jumbo, commented:
“It has been an exciting period for our Group as we focused on increasing our geographical footprint across Asia – we opened 2 new JUMBO Seafood restaurants in the PRC, namely Shanghai and Xi’an; our franchise network added 4 new JUMBO Seafood restaurants in new cities and 1 new NG AH SIO Bak Kut Teh outlet, which marks our first overseas outlet for the brand. We also expanded our F&B brands portfolio, having obtained the franchise to operate the Tsui Wah Cha Chaan Teng (Hong Kong-styled cafe) in Singapore and opened the first outlet in June 2018.
As with any growing business, we are keenly aware that we are in the gestation period of our expansion, locally and regionally, which was reflected in our financial performance for the year. Nonetheless, I am pleased that we have continued to deliver a resilient set of results, and I believe in maintaining a long-term view on our business, and to prudently balance the costs associated with our expansion plans.”
Thai Beverage Public Company Limited (SGX: Y92) is the other company that we will look at in this article. As a quick introduction, Thai Beverage is a company operating in four different segments, namely, Spirits, Beer, Food, and Food Beverages.
For the full year ended 30 September 2018 (FY2018), Thai Beverage reported that revenue was up 20.9% year-on-year to THB 229.7 billion. Yet, EBITDA (earnings before interest, tax, depreciation and amortisation) declined by 19.8% to THB 36.2 billion. Similarly, net profit attributable to shareholders fell 46.3% year-on-year to THB 18.5 billion. Excluding one-off items, net profit attributable to shareholders would have dropped by 19.1% instead.
Thai Beverage announced a final dividend of THB 0.24 per ordinary share. Including THB 0.15 interim dividend paid, the total dividend per share for FY2018 was THB 0.39. This was down from THB 0.67 dividend per share paid in FY2017.
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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.