RESTAURANT group Jumbo posted a higher net profit of S$2.08 million for the first quarter ended Dec 31, 2015, up from S$1.67 million a year ago.
Revenue increased 7.6 per cent to S$30.93 million due to revenue contributions from its second Jumbo Seafood restaurant in Shanghai which was launched in August last year, as well as an overall increase in revenue from the rest of its restaurants.
Earnings per share were flat at 0.3 Singapore cent.
Profit after tax decreased by 4.9 per cent to $2.04 million due to expenses associated with its initial public offering and pre-operating expenses incurred by its third Jumbo Seafood restaurant in Shanghai, which commenced operations last month. Excluding one-off IPO expenses of S$0.7 million, profit after tax would have been approximately S$2.7 million, or 25.5 per cent higher year on year.
"The conditions in the food and beverage industry will remain challenging," it said, adding that its two new restaurants in Shanghai will need at least six months before they contribute positively to the group's profits.
"The group will continue to explore opportunities to expand our network of F&B outlets and business through the opening of new outlets, acquisitions, joint ventures or strategic alliances with partners who can strengthen our market position and add value to our existing business."
This article was first published on February 4, 2016.
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