IPO and pre-operating expenses dragged their bottomline.
First step jitters are common in firms which just launched their initial public offering (IPO) as Singapore’s chilli crab restaurant group was burdened by IPO expenses and pre-operating expenses incurred for the third Jumbo Seafood restaurant in Shanghai.
According to a press release by Jumbo, its revenue, however increased to $30.9m thanks to higher contributions from its restaurants in Singapore and Shanghai.
Excluding one-off IPO expenses, Jumbo Group’s profit would have increased by 25.5% or $2.7m.
“JUMBO turned in revenue of $30.9 million in Q1 FY2016, up 7.6% from $28.7 million in Q1 FY2015. This was attributable to the Group’s second Jumbo Seafood restaurant in Shanghai, PRC which commenced operations in August 2015 and an overall increase in revenue from the rest of the Group’s restaurants,” Jumbo Group said.
“In line with the increase in revenue, cost of sales which comprise raw materials and consumables used increased 7.7% to $11.5 million in Q1 FY2016 from $10.7 million in Q1 FY2015,” they added.
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