Chairman's Statement
Dear Shareholders,
On behalf of the Board of Directors, we are pleased to present JUMBO Group Limited’s annual report for the financial year ended 30 September 2024 (“FY2024”). This year’s theme, ROOTED IN STRENGTH, POISED TO GROW, reflects our dedication to leveraging the robust foundations we have built while embracing opportunities for sustainable growth. FY2024 has been a pivotal year for us, marked by significant milestones and initiatives that have bolstered our resilience and positioned us for continued success in the years to come.
Year in Review
FY2024 presented a mix of challenges and achievements that tested our adaptability and resilience. Domestically, our core brands performed robustly, supported by sustained consumer demand and the revival of social and corporate events. Increased business activities and a gradual return to pre-pandemic levels of engagement provided a strong boost to our Singapore operations. This recovery underscored the effectiveness of our strategies and the dedication of our teams. Their unwavering commitment allowed us to navigate complexities and deliver experiences that resonate with our customers.
Regionally, our operations faced headwinds, particularly in the People's Republic of China (“PRC”), where economic challenges were exacerbated by the impacts of its real estate sector and reduced consumer activity in certain regions. The resulting uncertainty necessitated a more measured and strategic approach. Despite these challenges, we focused on enhancing operational efficiencies, managing costs effectively, and maintaining the high standards that define JUMBO’s reputation. These measures not only helped us mitigate short-term impacts but also positioned us to capitalise on emerging opportunities as market conditions improve.
A highlight of the year was the inauguration of the JUMBO Academy, which represents a cornerstone of our efforts to foster talent development and innovation within the F&B industry. The academy reflects our commitment in addressing the growing demand for skilled talent and ensuring the continued relevance of our workforce. During the event, we celebrated two key milestones that underscore this commitment. First, we received the Workplace Learning: READY Mark Recognition from Nanyang Polytechnic's National Centre of Excellence for Workplace Learning, a testament to our dedication to enhancing workplace learning standards. Second, we signed a three-year Memorandum of Understanding (MOU) with the Institute of Technical Education (ITE), which is expected to benefit approximately 1,000 ITE students through internships and scholarships, providing them with valuable industry exposure. Together, these initiatives highlight our focus on shaping the future workforce and advancing human capital development within the industry.
In addition to workforce development, we also introduced several initiatives aimed at enhancing operational capabilities and transforming customer experiences. One notable advancement was the implementation of Robotic Process Automation (RPA), which significantly improved backend processes by streamlining administrative tasks and reducing the risk of human errors. This initiative has allowed us to allocate resources more effectively, enabling teams to focus on value-adding activities. Furthermore, we are in the final stages of launching an integrated mobile app that will house our JUMBO Rewards programme alongside features such as table reservations, online food delivery, and e-commerce services. This app is designed to provide a seamless digital experience for our customers, fostering deeper engagement and convenience in every interaction with our brand.
To further expand our presence, we established a company in Indonesia, marking a strategic step towards introducing our signature dining experiences to new markets. This development is aligned with our commitment to exploring opportunities for targeted expansion while maintaining a focus on quality and operational excellence. Our aim is to bring JUMBO’s unique offerings to a wider audience, ensuring that our brand continues to resonate across diverse cultural and culinary landscapes.
Financial Highlights
In FY2024, the Group achieved revenue of $190.4 million, a commendable increase from $178.8 million in FY2023. This growth was primarily driven by the recovery of business activities in Singapore, where revenue rose by $18.7 million to $167.1 million. This reflects the strong local demand and increased tourist footfall, supported by the success of new initiatives and strategies. However, revenue from our PRC operations declined by $7.2 million to $18.9 million due to ongoing economic challenges and softer consumer sentiment in the region.
Despite these pressures, the Group delivered an EBITDA of $35.8 million, showcasing our ability to adapt and remain resilient amidst operational challenges. Profit attributable to owners of the Company stood at $13.7 million, reflecting our commitment to navigating economic uncertainties while delivering sustainable value to our stakeholders. These results underscore the effectiveness of our focused strategies and our ability to strike a balance between short-term challenges and long-term growth aspirations.
Dividends
The Board is pleased to propose a final dividend of 0.5 cent per share for FY2024, bringing the total dividend for FY2024 to 1.0 cent per share. This proposal reflects our commitment to rewarding shareholders for their unwavering support while maintaining financial prudence.
Going Forward
As we look ahead to FY2025, we approach the future with cautious optimism. In Singapore, we plan to deepen our market presence by strengthening our core brands and enhancing customer engagement through innovative dining concepts. Leveraging digital platforms will remain a key priority, as we seek to streamline operations and connect with customers in more meaningful ways. The integration of technology into our customer experience and operational processes will enable us to remain competitive and relevant in an ever-evolving landscape.
On the regional front, we are committed to optimising our operations while exploring opportunities for expansion in promising markets. Our strategy focuses on identifying locations where JUMBO’s unique offerings can resonate with local tastes and preferences. By combining operational excellence with a keen understanding of market dynamics, we aim to expand our footprint sustainably while preserving the essence of our brand.
Investment in technology, infrastructure, and workforce development will remain pivotal to our strategy. The implementation of digital transformation initiatives will enhance our agility and foster innovation, ensuring that we are wellequipped to adapt to industry shifts and global uncertainties. Additionally, we recognise the importance of sustainability and social responsibility in our long-term strategy. In the coming year, we will introduce new initiatives to reduce our environmental footprint and contribute positively to the communities we serve. These efforts are guided by our belief that business success and social responsibility go hand in hand.
Acknowledgements
On behalf of the Board and management, we extend our deepest gratitude to our shareholders, partners, and customers for your steadfast support. Your confidence in our vision and strategies has been instrumental in driving our progress and achievements. To our dedicated staff, we cannot thank you enough for your passion, commitment, and resilience. Your efforts during both challenging and prosperous times have been the cornerstone of JUMBO’s success.
As we navigate an evolving landscape, we are confident that the Group is well-positioned to seize new opportunities and deliver sustainable value for all stakeholders. Guided by our strong foundation and shared vision, we look forward to driving JUMBO Group’s growth and achieving long-term success in the years to come.