Jumbo Group's net profit fell by 84.9% in the second half of the year due to a decrease in local revenue and an increase in operating costs | Lianhe Zaobao

Due to a decrease in revenue from the local Singapore and mainland China markets, as well as persistently high overall operating costs, the restaurant company known for its chili crab, Jumbo Group, saw its net profit in the second half of the fiscal year plummet by 84.9% year-on-year to SGD 719,000. The group released its performance results for the second half of the fiscal year 2025 and the full year, ending in September this year, on Wednesday evening (November 26). The board proposed a final dividend of 0.25 cents per share and a special dividend of 0.5 cents per share, bringing the total dividend for the fiscal year 2025 to 1.25 cents per share, up from last year's 1 cent per share. The group's earnings per share for the second half of the fiscal year were 0.1 cents, down from 0.8 cents in the same period last year. Jumbo's total revenue in the second half of the year declined by 0.4% year-on-year to SGD 92.95 million. Among this, revenue from the Singapore market was SGD 80.993 million, a decrease of 0.98% year-on-year; revenue from the mainland China market fell by 3.74% to SGD 8.696 million; while revenue from Taiwan and South Korea increased to SGD 1.57 million and SGD 1.69 million, respectively. The announcement stated that the decrease in revenue from the mainland China market was due to the closure of one store and a two-month temporary renovation of another store. For the full year, Jumbo's revenue for the fiscal year 2025 decreased by 0.1% year-on-year to SGD 190.27 million, while net profit fell by 36.6% year-on-year to SGD 8.659 million. Jumbo Group stated that intensified competition in the dining market and a reduction in non-essential dining expenditures led to a decline in sales at most stores in the second half of the year. Additionally, costs related to wage adjustments, new employee expenses, and marketing have all increased. Employee welfare expenses in the second half of this fiscal year rose by 3.5% year-on-year to SGD 32.535 million, mainly due to increased hiring to support new business operations, as well as annual salary adjustments and other expenses. Operating lease costs surged by 37.5% to SGD 3.112 million. At the same time, the new headquarters, central kitchen facilities, and the leasing of three new stores also led to significant increases in depreciation and interest expenses for right-of-use assets. Further Reading Net profit for fiscal year 2025 expected to decline significantly, Jumbo Group issues profit warning Jumbo Group introduces the famous Beijing roast duck brand, Siji Minfu The group stated: "Although these investments will impact profitability in the short term, they are expected to contribute to future growth and operational efficiency improvements." Looking ahead, Jumbo Group indicated that the macroeconomic environment is unclear, and consumer confidence is low. They maintain a cautious attitude towards the development prospects for the next 12 months, continuing to adopt a prudent growth strategy, focusing on strengthening operational foundations, enhancing productivity, and exercising careful cost control. In specific market aspects, Jumbo said it will focus on optimizing the performance of its Singapore stores and deepening interactions with local diners. For the mainland China market, the group is committed to enhancing profitability through precise marketing, optimizing the menu, and carefully managing operational costs. In addition, they are actively preparing to integrate the central kitchen and headquarters into the same facility in the fiscal year 2026 to improve efficiency and create synergies in production, logistics, and training. Jumbo Group mentioned during the release of its second-half performance in the previous fiscal year that it plans to expand into new markets in Southeast Asia, but this time it did not mention this in the performance release. Jumbo Group's Executive Chairman and CEO, Ang Joon Kiat, said: "Our strategic investments in new stores, infrastructure, and talent are laying a solid foundation for sustainable growth. We will continue to focus on improving operational efficiency, providing an exceptional dining experience, and creating long-term value for our stakeholders." Jumbo Group's stock price closed at SGD 0.28 on Wednesday, unchanged