BRIEF: Jiumaojiu’s revenue, profit fall as same-store sales tumble 20%
Restaurant operator Jiumaojiu International Holdings Ltd. (9922.HK) last Friday reported its revenue and profit both fell more than 10% in the first half of the year, as growing consumer caution in China caused same-store sales at its three main chains to tumble.
The company reported its revenue fell 10.1% year-on-year to 2.75 billion yuan ($384 million) in the six months to June from 3.06 billion yuan a year earlier. Its profit for the period fell 16% to 60.7 million yuan from 72.3 million yuan. Same-store sales for self-operated stores of its core Tai Er chain fell 19% from a year earlier, while the figures for its smaller Song Hot Pot and Jiu Mao Jiu chains fell 20.1% and 19.8%, respectively.
As sales worsened, the company closed a net 42 stores during the quarter, or about 5% of its total, dropping its restaurant count to 729.
Jiumaojiu’s stock fell 2.2% on Monday to close at HK$2.70. The stock is down about 22% this year.
By Doug Young
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