Singapore is known for being a food paradise. Many people like to go outside and eat since there are so many choices of food to eat. With Singapore fully opened up and travel to Singapore has picked up significantly, investors could consider investing in food & beverage stocks.
Here are 3 food stocks that investors could consider adding to their watchlist.
Jumbo Group
Jumbo is one of Singapore’s leading multi-dining concept F&B establishments. It has a portfolio of 7 F&B brands – Jumbo Signatures, Jumbo Seafood, Mutiara Seafood, Ng Ah Sio Bak Kut Teh, Zui Teochew Cuisine, Chao Ting Pao Fan and Kok Kee Wonton Noodle.
It also operates 3 Tsui Wah Hong Kongstyle “Cha Chaan Teng” outlets as a franchisee in Singapore and co-owns the Singapore Seafood
Republic brand which has three outlets. It also has a joint venture which operates a “Lau Lim Mee Pok” stall in Singapore.
In its full year results ended 30 Sep 2023, Jumbo reported revenue jump by 54.7% to record S$178.8 million. Net profit after tax came in at S$14.6 million compared to a loss in FY23. The company declared a final dividend of 1.0 cent per share.
Given that Singapore and China has opened up its economy and that Jumbo has a number of F&B brands which could diversify its revenue stream, it might well be one of the 3 food stocks that will whet your investing appetite. You can view the company website here.
RE&S Holdings
RE&S is a multi-concept owner and operator of F&B outlets in Singapore and Malaysia that provides customers with authentic Japanese cuisine and dining experiences.
RE&S has grown from a single restaurant into a network comprising more than 70 F&B outlets, a Corporate Headquarters at Tai Seng which houses the corporate office and central kitchen, as well as a procurement office in Japan.
RE&S has a diverse portfolio comprising 20 distinct brands covers the full spectrum of varied market segments today; ranging from fine dining (Kuriya Dining) to family-style (Ichiban Boshi) and convenience (Kuriya Japanese Market).
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Beyond restaurants, the business also includes convenient food retail outlets, and the supplying of quality food ingredients to other food service & hospitality businesses.
For the half year ended 31 Dec 2023, RE&S reported a slight increase in net profit to S$89.2 million while net profit after tax decrease by 56% to S$2.4 million. The decrease in profit was mainly due to higher operating and non-operating expenses.
Despite the drop in profit, the company declared an interim dividend of 0.6 cent per share. With the introduction of the popular Mister Donut to Singapore, it could prove to be a winning formula for the company growth prospects.
With regards to the company outlook, RE&S indicated that the F&B industry in Singapore is expected to be challenging, dealing with increasing rentals and surging raw material prices which will contribute to rising operating costs.
You can view the company website here.
Soup Holdings
Soup Holdings formerly Soup Restaurant, owns and operates a chain of niche restaurants that serve traditional, homecooked dishes which originated from family recipes.
Today, the Group operates under the brand names of “Soup Restaurant”, “Teahouse by Soup Restaurant”, “Cafe O”, “Pot Luck By Soup Restaurant”, and “Little Teahouse”, that are located across Singapore.
It serves traditional “Chinatown Heritage Cuisine” with its signature dishes being “Samsui Ginger Chicken” and various traditional Chinese double-boiled herbal soups.
For the full year ended 31 Dec 2023, Soup Holdings reported revenue increase by 9.3% to S$41.0 million while net profit increase by 12.4% to S$1.6 million. The company declared a final dividend of 0.3 cents per share.
Soup Holdings is taking proactive steps to improve the existing business and expand new concepts with streamline operations, plans include to rejuvenate and reposition the brand to keep it relevant, distinctive, and appealing to its target audience.
The company will widen its distribution networks for consumer goods as well as continuing its journey to venture into new realms including manufacturing and exporting of its bottled sauces overseas to enhance its growth prospects. You can view the company website here.
