When we first started at
East Coast Seafood Centre
Recognition is the
Your dining experience is
On behalf of the board of directors of the Company (“Board”), I am pleased to present JUMBO’s annual report for the financial year ended 30 September 2016 (“FY2016”).
FY2016 has been a remarkable year for JUMBO. We steadfastly stood by our guiding principle of leveraging our strengths and focusing our resources at targeted opportunities in order to achieve sustainable growth for our business. This has served us well, as we continue to see broadbased growth across our operations and improved profitability, in spite of the challenging F&B industry.
Financial HighlightsThe Group recorded an increase in revenue of 11.4% or $14.0 million from $122.8 million in the financial year ended 30 September 2015 (“FY2015”) to $136.8 million in FY2016. This was mainly attributable to revenue contributions from our 2 new JUMBO Seafood outlets in Shanghai, PRC as well as an overall increase in revenue from the rest of our restaurants.
In line with the increase in revenue, the Group’s profit attributable to owners of the Company for FY2016 leapt 46.3% to $15.5 million from $10.6 million in the previous corresponding year.
The increase in net profit was mainly due to our cooperative ventures and the acquisition of a formerly partially-owned subsidiary to become fully-owned by the Company.
Year in Review
In FY2016, JUMBO continued to grow its business footprints in both Singapore and the PRC.
The Group opened its third JUMBO Seafood outlet in Shanghai at the International Finance Centre in January 2016, following the launch of our first 2 outlets in Shanghai, PRC.
In Singapore, the Group announced in October 2016 the expansion of its JUMBO Seafood (Riverside) outlet with the leasing of an additional 3,500 square feet of space at its current location, as well as the opening of its fifth NG AH SIO Bak Kut Teh outlet at Resorts World Sentosa (“RWS”). The 1,600 square feet NG AH SIO Bak Kut Teh outlet at RWS features an innovative dining eco-system that effectively utilises a combination of automated systems capable of generating cost savings for the Group. A sixth NG AH SIO Bak Kut Teh outlet at the Food Village (Takashimaya Foodcourt) in Ngee Ann City was added in January 2017.
The expansion of our business is accompanied by growing brand loyalty among our customers. I am pleased to note that membership numbers for our JUMBO Rewards programme had grown from 48,000 members last year at the time of our initial public offering (“IPO”), to 54,000 members today. With this, I would like to extend my warmest welcome to all the new members of our JUMBO family.
Awards and Accolades
JUMBO’s pioneering spirit, enduring quest for innovation and business excellence, continued to be recognised through prestigious awards and accolades. In FY2016, we are humbled, yet honored, to be conferred with a series of awards including the Singapore Business Awards – The Enterprise Award (2016), Singapore Corporate Awards – Best Investor Relations, Merit Award for First-Year Listed Companies (2016), SIAS 17th Investors’ Choice Awards – Winner of Most Transparent Company Award for New Issues (2016) and the Excellent Service Award (2016).
While these accolades may have been awarded to the Group as a whole, they would not have been possible without the hard work, dedication and support put in by our employees and business associates, and I wish to dedicate these awards to every one of you.
2017 will be a milestone year for JUMBO as we celebrate our 30th anniversary. To commemorate this momentous occasion, we will be looking forward to launch a year-long series of celebratory events under the overarching theme of “Bonding People Through Food”. Importantly, I would like to extend our heartfelt appreciation to all our employees, customers and suppliers who have made this journey possible every step of the way.
On the business front, we are heartened to see that our PRC operations have continued to grow positively year-on-year with increased revenue contribution from this geographical segment from 8.5% in FY2015 to 14.6% in FY2016. Riding on our operational success in Shanghai, PRC to date, the Group intends to expand its brands to other major Chinese cities and to pursue franchising opportunities to diversify and grow our business offerings. In December 2016, the Group inked its first franchise agreement to introduce JUMBO Seafood in Ho Chi Minh City and Danang, Vietnam. We certainly look forward to an exciting year ahead.
The F&B industry will continue to be challenging and competitive, given the weak economic outlook, coupled with pressure on operating costs and keen competition. Nonetheless, we intend to leverage our brands and talented people to stay competitive in the marketplace, and strive to strengthen our brands portfolio for sales and earnings growth.
In view of the Group’s healthy operating cash flow and to reward shareholders of the Company (“Shareholders”) for their loyal support, we are pleased to propose a tax exempt (one-tier) final cash dividend of 1.0 cent and a tax exempt (onetier) special dividend of 0.7 cents, which together, represents a total proposed dividend payout of 1.7 cents per share for FY2016. The dividend payout, amounting to approximately 70.3% of the Group’s profit attributable to owners of the Company in FY2016, is subject to the approval of Shareholders at the annual general meeting (“AGM”).
I would like to take this opportunity to express my gratitude to all our employees and management team, who work tirelessly to deliver food, service and operational excellence to our customers and help JUMBO grow the business to what it is todayLast but not least, I would also like to thank our loyal customers, Shareholders and business partners for your support through the years. I look forward to celebrate another year of success with all of you.