Financials

Condensed Interim Consolidated Financial Statements For The Six Months And Full Year Ended 30 September 2024

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Condensed Interim Consolidated Statements Of Profit Or Loss And Other Comprehensive Income

Condensed Interim Statements Of Financial Position

REVIEW OF PERFORMANCE OF THE GROUP

Revenue

Our Group’s revenue increased by 0.6%, or $0.6 million, from $92.8 million for the six months ended 30 September 2023 (“2H2023”) to $93.4 million for 2H2024. Similarly, our Group’s revenue increased by 6.5%, or $11.6 million, from $178.8 million for the financial year ended 30 September 2023 (“FY2023”) to $190.4 million for FY2024. The increase was mainly due to higher revenue from our Singapore operations.

The recovery in business, social events, and tourism led to a 12.6% increase in revenue from our Singapore operations. Revenue from our Singapore operations increased by $18.7 million, from $148.4 million in FY2023 to $167.1 million in FY2024.

The People’s Republic of China (“PRC”) market remains weak, with consumer spending and dining activities remaining soft. Revenue from our PRC operations decreased by 29.0%, or $3.7 million, from $12.7 million in 2H2023 to $9.0 million in 2H2024. Overall, revenue from our PRC operations decreased by 27.6%, or $7.2 million, from $26.1 million in FY2023 to $18.9 million in FY2024.

Cost of sales

Cost of sales, which comprised raw materials and consumables, increased by 0.2%, or $0.1 million, from $32.6 million in 2H2023 to $32.7 million in 2H2024. Cost of sales increased by 6.0%, or $3.7 million, from $61.7 million in FY2023 to $65.4 million in FY2024. These increases were in line with the increase in revenue.

Gross profit

Gross profit increased by 0.7%, or $0.5 million, from $60.2 million in 2H2023 to $60.7 million in 2H2024. The gross profit margin increased from 64.9% in 2H2023 to 65.0% in 2H2024. Gross profit also grew by 6.8%, or $7.9 million, from $117.1 million in FY2023 to $125.0 million in FY2024. The overall gross profit margin increased from 65.5% in FY2023 to 65.7% in FY2024.

Other income

Other income increased by $1.6 million, from $1.3 million in 2H2023 to $2.9 million in 2H2024. This increase was mainly due to the Group receiving $1.5 million from government support schemes in 2H2024. Other income decreased by 16.8%, or $0.8 million, from $5.0 million in FY2023 to $4.2 million in FY2024 due to reduced government support schemes.

Employee benefits expenses

Employee benefits expenses increased by 5.6%, or $1.6 million, from $29.8 million in 2H2023 to $31.4 million in 2H2024. Overall, employee benefits expenses increased by 10.4%, or $5.8 million, from $56.4 million in FY2023 to $62.2 million in FY2024. These increases were primarily due to the increase in manpower headcount required to support our business operations, as well as corresponding salary adjustments and bonuses.

Operating lease expenses

Operating lease expenses increased by 62.3%, or $0.9 million, from $1.4 million in 2H2023 to $2.3 million in 2H2024. Operating lease expenses also increased by 4.6%, or $0.2 million, from $4.5 million in FY2023 to $4.7 million in FY2024. This increase was attributable to higher variable rent driven by higher revenue from our Singapore outlets and an increase in the variable rent percentage as a result of new leases.

Depreciation and amortisation

Depreciation expenses for property, plant and equipment (“PP&E”) increased by 14.5%, or $0.4 million, from $2.9 million in 2H2023 to $3.3 million in 2H2024. Depreciation expensesfor PP&E also increased by 6.9%, or $0.4 million, from $5.6 million in FY2023 to $6.0 million in FY2024, mainly due to the opening of a JUMBO Seafood outlet in the PRC.

Depreciation expenses for right-of-use assets (“ROU”) decreased by 7.2%, or $0.4 million, from $6.3 million in 2H2023 to $5.9 million in 2H2024. Depreciation expenses for ROU also decreased by 2.1%, or $0.3 million, from $12.1 million in FY2023 to $11.8 million in FY2024. This decline was primarily due to the closure of one Kok Kee Wanton Noodles outlet, the closure of a JUMBO Seafood outlet in Xi’an and a reduction in office space in one of our PRC offices.

Impairment losses

The Group recognised impairment losses of $0.5 million for PP&E, $1.3 million for ROU assets and $0.8 million for goodwill in FY2024. These impairments were mainly due to underperforming outlets overseas.

Other operating expenses

Other operating expenses, which included cleaning services, repairs and maintenance, credit card and delivery service commissions, general supplies and marketing expenses, increased by 2.5%, or $0.2 million, from $8.9 million in 2H2023 to $9.1 million in 2H2024. Other operating expenses increased by 4.1%, or $0.7 million, from $18.1 million in FY2023 to $18.8 million in FY2024. The increase was in line with the general increase in business activities.

Income tax expense

The income tax expense increased by 4.6%, or $0.2 million, from $4.2 million in FY2023 to $4.4 million in FY2024, mainly due to increase in profits from our Singapore operations.

Profit attributable to owners of the Company

Profit attributable to the owners of the Company was $4.8 million for 2H2024, compared to $6.7 million in 2H2023. Profit attributable to the owners of the Company decreased by 6.5%, or $0.9 million, from $14.6 million in FY2023 to $13.7 million in FY2024.

Review of the financial position of the Group

Current assets

The Group’s current assets decreased by $6.9 million to $67.4 million as at 30 September 2024, largely due to:

1. disposal of investments held at amortised cost of $15.1 million and unquoted equity shares of $1.9 million;
2. a decrease in trade and other receivables of $0.9 million;
3. a decrease in inventories of $0.4 million; and partially offset by
4. an increase in cash and cash equivalents of $12.7 million mainly due proceeds from the disposals of other investments.

Non-current assets

The Group’s non-current assets decreased by $3.0 million to $54.3 million as at 30 September 2024, largely due to:

1. an increase in PP&E of $1.4 million due to acquisition of PP&E $8.1million, offset with depreciation $6.0 million, impairment loss of $0.5 million and loss on disposal of $0.2 million;
2. an increase in investment in associates of $0.6 million due to the incorporation of an associated company, JBHG F&B Services (Wuhan) Co Ltd; and partially offset by
3. a reclassification of other investments of $0.3 million to current assets as it is due to mature in the next 12 months;
4. a decrease in goodwill of $0.8, mainly due to impairment loss on our Taiwan operations; and
5. a decrease in ROU of $3.9 million, mainly due to the closure of a JUMBO Seafood outlet in Xi’an.

Current liabilities

The Group’s current liabilities increased by $6.8 million to $51.7 million as at 30 September 2024 mainly due to:

1. an increase in trade and other payables of $3.5 million attributable to higher purchases made, for which payments are yet to be settled;
2. an increase in lease liabilities of $0.9 million mainly due to additional leases entered during FY2024; and
3. an increase in income tax payable of $2.4 million mainly due to profits from our Singapore operations.

Non-current liabilities

The Group’s non-current liabilities decreased by $8.3 million to $18.4 million as at 30 September 2024. This reduction stemmed from:

1. a $4.4 million repayment of bank borrowings; and
2. a decrease in lease liability of $3.9 million mainly due to the closure of a JUMBO Seafood outlet in Xi’an, a reduction in office space and rental expenses for an outlet in the PRC partly offset by the opening of two new outlets.

Review of the cash flow statement of the Group

The Group generated net cash from operating activities before movements in working capital of $37.5 million as at 30 September 2024. Net cash generated from operations amounted to $42.3 million due to an increase in trade and other receivables of $0.9 million, an increase in inventories of $0.4 million and an increase in trade and other payables of $3.6 million. Including the $0.3 million interest income received, $0.4 million interest paid and $2.1 million income tax paid, net cash generated from operating activities was $40.2 million as at 30 September 2024.

Net cash used in investing activities amounted to $9.8 million mainly due to:

1. Proceeds from disposal of investments of $19.9 million, of which $18.2 million was for the disposal of short-term investments and unquoted equity shares of $1.7 million; partially offset by
2. acquisition of PP&E of $8.1 million, of which $4.0 million was for the acquisition of a property used for our central kitchen and the rest are mainly for new outlets in Singapore and the PRC; and
3. investments in associates of $1.3 million.

Net cash used in financing activities amounted to $37.2 million was mainly from the off-market equal access share buyback and market purchases of treasury shares of $10.1 million, the repayment of lease obligations of $13.2 million and repayment of bank borrowings of $4.4 million and dividends paid to owners of the Company of $9.4 million.

As a result, cash and cash equivalents increased by $12.8 million during the financial year to $46.4 million as at 30 September 2024.

Commentary on current year prospects

The F&B industry continues to grow, driven by the resurgence of consumer demand and evolving preferences. JUMBO remains optimistic about navigating these trends with resilience and strategic foresight, building on its strong foundation to capitalise on opportunities in both the local and international markets while investing in key areas to enhance its competitiveness.

JUMBO will strengthen its focus on the domestic market, particularly within the local F&B scene and the broader demand driven by tourism, both of which are poised for sustained growth. By aligning with shifting consumer trends and leveraging its established brand, the Group aims to deepen market penetration and continue offering exceptional dining experiences. Internationally, JUMBO plans to expand into new markets across Southeast Asia, further extending its geographical reach.

In addition, JUMBO is committed to investing in infrastructure, IT, and digitalization to improve operational efficiency and foster innovation. Central to this effort is a focus on talent development through enhanced training programs aimed at cultivating talent, improving competitiveness, and boosting staff retention. These initiatives are designed to reinforce the Group’s agility in responding to market dynamics and ensure its continued leadership in the industry.

Barring any unforeseen circumstances, the Group is cautiously optimistic about its performance over the next 12 months, and we remain committed to driving sustainable growth and value for our stakeholders.