Its interest in the JV is worth 300,000 yuan

 

[SINGAPORE] Chill crab purveyor   Jumbo Group   : 42R 0% has entered into a joint venture (JV) with a Chinese company to operate a restaurant in Xi&rsquo an.

 

A Jumbo unit will take a 20 per cent stake in the JV company for 300,000 yuan (S$55,300), while its partner, Beijing Hualian F& B Management Co, will hold the remaining 80 per cent with a registered capital of 1.2 million yuan.

 

The JV will operate a restaurant under the Jumbo Seafood brand in Xi&rsquo an, the group said in a bourse filing on Thursday (Jan 22).

 

Jumbo&rsquo s investment will be funded through internal resources and is not expected to have a material impact on the group&rsquo s performance for the financial year ending Sep 30.

 

The food and beverage operator has seven outlets in Singapore and nine in China, based on information on its website. It also operates six outlets in Seoul, Bangkok, Ho Chi Minh City and Phnom Penh, bringing its total restaurant count to 22.

 

&ldquo Xi&rsquo an remains a sizeable regional city where the group believes the Jumbo Seafood brand continues to have relevance and appeal,&rdquo the company said.

This allows it to mitigate exposure to future rental volatility

 

[SINGAPORE] Jumbo Group is proposing to acquire a leasehold interest in a 26 Tai Seng Street property owned by Boustead Industrial Fund (BIF), a private real estate trust set up by Boustead&rsquo s real estate solutions division, Boustead Projects.

 

Jumbo Group currently occupies more than half the leasable area in the property under a long-term lease arrangement, and the site is integral to its central kitchen, logistics and training operations. 

 

Hence, the potential acquisition allows it to take a position as a co-investor to mitigate exposure to future rental volatility, reduce risks of relocation disruptions and enhance visibility over long-term occupancy and cost structure, said the group on Monday (Jan 19). 

 

&ldquo Participating in the acquisition of an interest in the property aligns with the group&rsquo s strategy of securing operational stability for key facilities that support our core business activities,&rdquo Jumbo Group said. 

 

&ldquo The proposed investment also allows the group to plan capital deployment in a measured and phased manner, while continuing to benefit from the operational synergies already established at the property,&rdquo it added. 

 

The acquisition will be enacted through a special purpose vehicle that will be established by Jumbo Group&rsquo s wholly owned subsidiary Jumbo Group of Restaurants (JGOR) and Perpetual (Asia), the trustee of BIF. 

 

JGOR and Perpetual (Asia) will hold stakes of 30 per cent and 70 per cent in the special purpose vehicle, respectively. 

 

Perpetual (Asia) currently holds the property under a lease from JTC Corporation. The property&rsquo s leasehold land tenure of 30 years commenced in June 2007, with the option for renewal for another 30 years. 

 

The special purpose vehicle will be granted an option to acquire the leasehold interest in the 26 Tai Seng Street property after the assignment prohibition period imposed by JTC ends on Apr 10, 2033.

For the full year, the group&rsquo s revenue declined marginally by 0.1% y-o-y to $190.3 million. The group says that its performance reflects overall stability despite a challenging operating environment.

 

Incremental contributions from newly opened outlets helped cushion the impact of market headwinds, while the group continued to optimise its portfolio and strengthen brand presence.

 

Its operations in the People&rsquo s Republic of China saw signs of recovery in 2HFY2025, even as one outlet was closed and another underwent two months of refurbishment.

 

Net profit for FY2025 registered a significant y-o-y decline to $8.7 million due to higher operating costs in the latter part of the financial year. These costs included wage adjustments coupled with increased headcount to support new outlets and higher marketing expenses.

 

In addition, the group incurred higher right-of-use (ROU) depreciation and interest expenses arising from new leases for three outlets &ndash including one yet to commence operations &ndash as well as its new corporate office and central kitchen facilities.

 

The board of directors of Jumbo Group has recommended a final tax-exempt dividend of 0.25 cents per share, and a special tax-exempt dividend of 0.5 cents per share for FY2025. This brings the total dividend for the full year declared to 1.25 cents per share.

The restaurant is expected to open at Resorts World Sentosa

 

[SINGAPORE] Home-grown seafood restaurant group Jumbo has inked a joint venture with Chinese roast duck brand Siji Minfu to bring its signature Peking duck to Singapore.

 

While no launch date was provided, the restaurant is expected to open at Resorts World Sentosa, featuring the brand&rsquo s famed traditionally roasted Peking duck and its hallmark northern Chinese flavours. The setting will be one inspired by traditional Beijing courtyards.

 

Jumbo said the venture offers a timely opportunity to &ldquo build a strong partnership&rdquo with Siji Minfu and &ldquo capitalise on the growing global food and beverage sector in Singapore&rdquo through the introduction of the established Chinese brand.

 

The Singapore Exchange-listed company added that the collaboration is part of its &ldquo continuing growth strategy to build a robust roster of food and beverage brands and diversify its operations&rdquo , with a view to enabling future growth, regional expansion and potential spin-offs.

 

The group, which is famous for the chilli crab sold by its Jumbo Seafood brand, has a presence across several cities in China, including Shanghai, Beijing and Fuzhou.

 

In May, the restaurant operator reported a 10.6 per cent decline in profit to S$7.9 million for the six months ended Mar 31, down from S$8.9 million in the year-ago period. 

 

For Siji Minfu, this will mark the brand&rsquo s first overseas outlet, adding to its existing footprint of more than 20 locations in China, including in prominent areas such as Wangfujing and Qianmen Street in Beijing. These China-based outlets are not part of the joint venture.

 

Siji Minfu&rsquo s Singapore arm was incorporated on Aug 7, 2023, while the joint venture company, Sijiminfu-Jumbo, was established on Dec 18, 2024.

 

The joint venture is set to run for an initial term of five years, with the possibility of automatic extension or renewal by mutual agreement between the partners.

 

It has an issued share capital of S$2.6 million, comprising 2.6 million ordinary shares &ndash 90 per cent held by Siji Minfu and the remaining 10 per cent by Jumbo.

 

Jumbo said the investment will be funded by internal resources, and is not expected to have a material impact on its net tangible assets or earnings per share for the financial year ending Sep 30.

Jumbo Group of Restaurants has entered an agreement to establish a joint venture company with Si Ji Min Fu (SJMF), to operate a Peking roast duck-themed restaurant under the Si Ji Min Fu brand, according to a bourse filing on May 16.

 

The Si Ji Min Fu brand is a culinary name originating from China in 2008, known for its Peking roast duck and northern Chinese cuisine. The brand has 20 outlets in prime locations such as Wangfujing and Qianmen Street. The entity was incorporated in Singapore in 2023 as a private limited company engaged in restaurant operations.

 

With SJMF, Jumbo Group&rsquo s joint venture called SIJIMINFU-JUMBO was incorporated on Dec 18, 2024 with an issued share capital of $2.6 million with 2.6 million ordinary shares.

 

Jumbo Group will acquire 10% of the shares in the JV company, and SJMF will own the remaining 90%.

Revenue up 0.3% at $97.3 million due to its South Korea operations

 

[SINGAPORE] Restaurant operator Jumbo Group : 42R +6% reported a 10.6 per cent decline in profit to S$7.9 million for the six months ended March 31, down from S$8.9 million in the year-ago period.

 

Its revenue increased by 0.3 per cent from $97.1 million to $97.3 million in the first half of FY2025. This was mainly contributed by revenue from its South Korea operations, the group said in a bourse filing on Friday (May 9).

 

However, Jumbo noted that heightened competition in the local food and beverage sector, as well as weak consumer confidence and cautious spending in China, continued to affect dining demand. This affected revenue by 1.1 per cent locally and 2.5 per cent in China, respectively.

 

Meanwhile, cost of sales, which comprised raw materials and consumables, increased by 2.8 per cent and was primarily driven by higher prices of key ingredients amid ongoing supply chain volatility.

 

Operating expenses also increased, driven by additional headcount, wage adjustments, and higher depreciation expenses arising from new leases, the opening of new outlets, and the refurbishment of existing ones.

 

Jumbo&rsquo s board of directors has recommended an interim cash dividend of S$0.005 per share.

 

In Singapore, the group&rsquo s performance continued to reflect intense competition in the F& B sector, although this was partially offset by a recovery in tourism. While it has rebounded significantly from pandemic lows, the group noted that recent trends indicate a moderation in visitor arrivals and tourist spending.

 

Despite these headwinds, Jumbo stated that it &ldquo continues to strengthen its market position by aligning with evolving consumer preferences and enhancing its value proposition within Singapore&rsquo s competitive dining landscape&rdquo .

 

Internationally, the group said it remains &ldquo focused on optimising operations and pursuing growth opportunities in markets supported by favourable long-term demographic trends and an expanding demand for quality dining experiences&rdquo .

Therefore, Jumbo remains &ldquo cautiously optimistic&rdquo for the next 12 months, barring unforeseen circumstances.

 

Group CEO Ang Kiam Meng said: &ldquo While global economic uncertainties and trade-related challenges may impact the business environment, Jumbo remains focused on adapting to these headwinds. We are committed to navigating these times with resilience and continuing to strengthen our operations for the long term

 

Jumbo Group has reported earnings of $13.7 million for the FY2024 ended Sept 30, 1% lower y-o-y. The food and beverage (F& B) group reported 2HFY2024 earnings of $4.75 million, 32.6% lower y-o-y.

 

Revenue for the FY2024, however, stood at a record of $190.4 million, 6.5% higher y-o-y, mainly due to the recovery of businesses, social events and tourism in Singapore and offset by weaker revenue from China.

 

Revenue for Jumbo&rsquo s Singapore operations grew by 12.6% y-o-y to $167.1 million while revenue from Jumbo&rsquo s Chinese operations fell by 27.6% y-o-y to $18.9 million during the year.

 

In line with the higher revenue, gross profit was up by 6.8% y-o-y to $125 million. Gross profit margin improved by 0.2 percentage points y-o-y to 65.7%.

 

Despite the higher revenue, Jumbo&rsquo s bottom line dipped due to higher overall operating expenses, which includes higher employee benefits expenses from higher headcount, salary adjustments and other operating expenses such as cleaning services, repairs and maintenance, and credit card and delivery service commissions.

 

A final dividend of 0.5 cents per share was declared, down from the 1 cent dividend declared during the same period last year.

 

Looking ahead, Jumbo says it remains optimistic over the resurgence of consumer demand and evolving preferences in the F& B industry. It adds that it will fortify its focus in Singapore, especially within the local F& B scene and with broader demand driven by tourism.

 

In addition, the group says it plans to expand into new markets across Southeast Asia.

 

&ldquo We are thrilled to achieve record revenue for the second consecutive year, a milestone that highlights the dedication of our team and the continued trust of our customers, for which we are deeply grateful,&rdquo says Ang Kiam Meng, executive director and group CEO of Jumbo.

 

&ldquo This achievement reflects the strength of the foundation we have built, enabling us to navigate rising operational costs and ongoing global economic uncertainties,&rdquo he adds. &ldquo As we look ahead, we remain focused on adaptability, prudent resource management, and vigilance in addressing challenges, ensuring we are well-positioned for sustained growth and success in the year to come.&rdquo

 

Starting as a single outlet at East Coast Seafood Centre in 1987, Jumbo Group 42R 0.00% , originally known as Jumbo Seafood, gained fame for its signature chilli crab.

 

It soon became a popular dining destination for both locals and tourists in Singapore.

 

Listed on the Singapore Exchange S68 -0.2% (SGX) since November 2015, the group has expanded into 10 different brands through M& A, joint ventures (JV) and organic growth through the launch of creative dining concepts.

 

Jumbo Seafood is the group&rsquo s flagship brand, operating across six restaurants in Singapore and beyond, including China, South Korea, Taiwan, Thailand, Vietnam and Cambodia. In 2010, the group made its first M& A, acquiring Ng Ah Sio Bak Kut Teh, before launching Chui Huay Lim Teochew Cuisine the next year.

 

In 2018, Jumbo Group formed a JV with Hong Kong-based Tsui Wah Group to become a franchisee, bringing the Tsui Wah chain of restaurants to Singapore.

 

This was followed by the launch of a quick-service eatery, Chao Ting Teochew Pao Fan, in 2019 and the group&rsquo s first acquisition after its listing in 2020, Kok Kee Wanton Noodle.

 

Another significant milestone came in 2022 when the group launched its premium dining concept, Jumbo Signatures, at The Shoppes in Marina Bay Sands.

 

The following year, the group opened its first halal-certified restaurant, Mutiara Seafood.

 

Jumbo Group has also ventured into retail, packaging its chilli paste and other familiar flavours under the Love, Afare brand.

 

Today, Jumbo Group operates 46 outlets globally, a far cry from its humble beginnings.

 

In its latest 1HFY2024 ended March results, the group reported earnings of $8.9 million, 11.9% higher y-o-y.

 

This was largely due to a 13% y-o-y surge in overall revenue to $97.1 million, as revenue from the group&rsquo s Singapore operations grew by 21.5% y-o-y to $85.3 million, thanks to the rebound of business and social dining along with tourism.

 

A full half-year of operations from Jumbo Seafood&rsquo s Riverwalk outlet and extended operational hours at most Jumbo Seafood outlets also contributed to the healthy revenue.

 

Meanwhile, revenue from the group&rsquo s Chinese operations weakened 26.2% y-o-y to $9.9 million in 1HFY2024, which the group attributes to ongoing challenges with the country&rsquo s weak economy, largely due to struggles within its real estate industry.

 

Furthermore, the group&rsquo s Jumbo Seafood outlet in Xi&rsquo an ceased operations in November 2023.

 

&ldquo Despite healthy revenue growth in Singapore, we remain cautious about challenges such as increasing raw material costs and ongoing manpower shortages,&rdquo notes Jumbo Group in its 1HFY2024 report.

 

&ldquo Barring any unforeseen circumstances, the group is cautiously optimistic about its business performance for the next 12 months.&rdquo

 

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.

 

AT the company&rsquo s annual general meeting held last Friday (Jan 19), Jumbo Group&rsquo s shareholders approved the renewal of its share buyback mandate.

 

In a bourse filing, the food and beverage player said that it will offer S$0.26 in cash per share to buy back up to 10 per cent of the company&rsquo s 643,658,465 shares in issue.

 

The offer represents a 6.1 per cent discount to the average market price of the company&rsquo s shares over the last five market days before the offer was announced.

 

Under the equal access offer, each shareholder can accept to sell to the company up to 10 per cent of their shares.

 

Jumbo Group : 42R +1.82% added that up to 7.5 million of the shares bought back will be held or dealt with as treasury shares, while the remainder will be cancelled.

 

Internal resources will be used to finance the S$16.7 million required to purchase shares under the equal access offer, the company said.

 

For the year ended Sep 30, 2023, the company posted a net profit of S$14.6 million, reversing a net loss of S$91,000 over the same period a year earlier.

 

&ldquo The equal access offer provides shareholders who find it difficult to sell down a substantial portion of the shareholdings in the company as a result of the low trading volume in the shares with an opportunity to liquidate and realise their investment in the shares,&rdquo said Jumbo.

 

&ldquo This is an option which may not otherwise be readily available due to the low trading liquidity of the shares.&rdquo

 

RESTAURANT operator Jumbo Group : 42R -3.57% on Tuesday (Nov 28) reported earnings of S$6.7 million for the second half of the fiscal year ended September, up 52 per cent from its net profit of S$4.4 million in the year-ago period.

 

The stronger showing in H2 pushed the group&rsquo s full-year earnings to S$14.6 million, a turnaround from its net loss of S$91,000 in the previous year. 

 

The board of directors has recommended a final dividend of S$0.01 per share, subject to shareholder approval at the upcoming annual general meeting. No final dividend was paid out in FY2022. The pay-out date for the dividend will be announced later.

 

Revenue for H2 was up 40.7 per cent to S$92.8 million, from S$66 million. The group attributed its stronger top line figures for the six-month and full-year periods chiefly to the increase in revenue from its local operations on the back of the easing of pandemic-related measures. 

 

While Jumbo&rsquo s revenue from the sale of food and beverages increased, revenue from franchise income fell because there was no new franchise outlet in FY2023, the company said. 

 

The sustained recovery, coupled with the strategic conversion of the group&rsquo s SuiYi Gastrobar at The Riverwalk into a Jumbo Seafood outlet in January, pushed up the group&rsquo s revenue from Singapore operations by 46.7 per cent to S$$78.2 million in H2. 

In China, H2 revenue rose 15.3 per cent to S$12.7 million due to the end of the country&rsquo s zero-Covid policy in December last year. In Taiwan, Jumbo&rsquo s topline contributions rose 17.5 per cent to S$1.9 million. 

 

Cost of sales from raw materials and consumables was up 46.5 per cent to S$32.6 million in H2. This was in tandem with the increase in revenue, the company said. 

 

Jumbo said it remains &ldquo cautiously optimistic&rdquo for the next 12 months, barring unforeseen circumstances. Despite the revenue growth, the group said it remains mindful of challenges arising from increased operational costs from items such as raw materials, labour and utilities. 

 

Jumbo&rsquo s chief executive Ang Kiam Meng said: &ldquo In these uncertain times, Singapore is resilient despite global turbulence. However, caution is needed due to the volatile global economy, especially recent issues in China,&rdquo he said. 

 

&ldquo As we navigate this uncertain landscape, we stay vigilant and prepared for potential challenges.&rdquo  

 

In a separate announcement on Tuesday, Jumbo said its chief financial officer Tay Peng Huat has resigned to &ldquo pursue personal interests and other opportunities&rdquo . He has held the post since 2014.