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Chairman's Statement

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East Coast Seafood Centre

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Dear Shareholders,

On behalf of the Board of Directors of the Company (“Board”), we are pleased to present JUMBO’s annual report for the financial year ended 30 September 2023 (“FY2023”).

Year in Review

The lifting of COVID-19 measures throughout the world in 2022 and 2023 significantly bolstered our overall performance in FY2023. While this development brings considerable comfort to our Shareholders and employees, we are fully aware of the disparate pace of recovery across our markets and the operational challenges thereon.

Our business in Singapore has made substantial strides in FY2023. The revenue of our key brands – JUMBO Seafood and Zui Teochew Cuisine – have recovered to pre-COVID levels in Singapore. In addition, our premium brand, JUMBO Signatures, has continued to attract both new and existing diners since its opening in January 2022 at The Shoppes at Marina Bay Sands.

Our business in the PRC saw a slight recovery following the lifting of the zero-COVID policy in January 2023. However, the PRC has since entered a phase of subdued growth resulting from a fragile economic recovery. The challenging economic conditions in Taiwan led to the closure of our JUMBO Kitchen outlet in Taipei City in early 2023.

Throughout FY2023, the sudden increase in business activities, coupled with the ongoing Russia-Ukraine conflict and the delicate bilateral relationship between the US and PRC, resulted in supply-side challenges such as manpower shortages, disruptions in supplies and escalated costs across multiple facets including salaries, utilities, logistics and borrowings. In response to these challenges, along with the slow growth in the PRC, we redoubled our efforts towards organizational and operational readiness, efficiency and productivity.

We continue to emphasise technology adoption, train and develop our people and acquire new talent, enabling JUMBO to scale new heights.

We have steadfastly emphasised the cultivation of our next generation of talents. In 2023, we intensified our commitment with the implementation of innovative strategies in collaboration with educational institutions as part of our youth engagement initiatives. The dynamism of 2023 was evident as our Learning and Development team effectively orchestrated a diverse array of activities with notable success. These initiatives significantly broadened our knowledge base, contributing to the development of our future talents. Our collaborations with government agencies and educational institutions ensure a continuous enhancement of the workforce within the F&B industry.

We are committed to expand and diversify our dining options to achieve a broader customer base. In March 2023, we introduced Mutiara Seafood, our very first halal seafood dining concept at Wisma Geylang Serai. Mutiara Seafood provides our Malay community with the opportunity to relish the halal rendition of JUMBO Seafood dishes especially that of our famous Singapore Award-winning Chilli Crab. It is also a place where friends and business associates of different races can dine and congregate, realising our vision of “Bonding People Through Food”.

The challenges faced by JUMBO during the COVID pandemic, and our focused on digital transformation, regional expansion, and product diversification, were clearly supported by one of our independent directors, Dr Lim Boh Soon, who then initiated to the Singapore Management University (“SMU”). This resulted in the publication of a case study in November 2023, aimed at imparting strategic insights into change management and digital transformation strategies within the F&B industry to SMU’s local and international students. Notably, this showcases JUMBO as one of the first few SGX-listed companies to be featured in this manner.

Financial Highlights

In FY2023, the Group delivered a much improved set of performance, largely credited to the relaxation of COVID-19 measures in Singapore. Total revenue surged by 54.7% to reach $178.8 million. Specifically, revenue stemming from our Singapore operations saw a remarkable 78.0% increase to $148.4 million. However, challenges related to the zero-COVID policy in the PRC during the initial half of FY2023 impacted our PRC operations, leading to an overall revenue decline of 6.5% to $26.1 million.

Primarily due to the substantial uptick in business activities within our Singapore operations, profit attributable to owners of the Company stood at $14.6 million in FY2023, a significant improvement from the $0.1 million loss reported in FY2022. Additionally, the EBITDA for FY2023 surged to $37.6 million, marking a noteworthy increase from the $19.4 million recorded in FY2022.

Dividends

Given our commendable performance in FY2023, the Board has proposed a final tax-exempt (one tier) cash dividend of 1.0 cent per share for FY2023.

Going Forward

As we embark on the new financial year, the Group holds a positive view of our Singapore operations. The relaxation of vaccination-based safety measures and global border openings has rejuvenated our key brands and brought revenues back to pre-COVID levels. Despite this growth, we remain mindful of challenges posed by increased operational expenses, including raw materials, labor, and utilities. While benefiting from eased restrictions locally and internationally, we acknowledge potential hurdles, particularly in the PRC market. Sales in the PRC have yet to fully recover, and economic conditions may prolong this recovery process.

Our strategy revolves around adaptability, innovation and efficient resource management to navigate challenges and seize opportunities for sustainable growth. We are committed to closely monitoring these challanges and taking essential measures to ensure consistent growth and profitability.

Unless unforeseen circumstances arise, the Group holds a cautiously optimistic view of its business performance for the upcoming 12 months.

Acknowledgement

On behalf of the Board, we would like to extend our heartfelt gratitude to our dedicated management and staff for their unwavering commitment and loyalty during the challenging times of the COVID-19 pandemic. Their dedication and resilience have been instrumental in not just navigating through the pandemic but also ensuring our success and profitability. We deeply appreciate the support of our business partners and the loyalty of our customers. We are committed to maintaining our exceptional quality of food and service.

To our Shareholders, we express gratitude for your trust and support. We remain steadfast in our commitment to expanding JUMBO, scaling new heights, and elevating the JUMBO brand worldwide.

Tan Cher Liang

Independent Chairman

Ang Kiam Meng

Group CEO And Executive Director