SINGAPORE (Feb 7): Restaurant chain Japan Foods Holding has posted a 73.1% rise in earnings to $2.5 million for the 3Q ended December, from $1.4 million a year ago.
Revenue grew 11.4% to $18.7 million in 3Q18, from $16.8 million a year ago.
The increase was mainly due to a $1.2 million increase in revenue from restaurants operating under the Menya Musashi brand to $4.6 million in 3Q18.
This was attributable to the conversion of two restaurants to the Menya Musashi brand as well as the opening of a new restaurant at Northpoint City in Sept 2017.
In addition, revenue from restaurants operating under the Ajisen Ramen and Keika Ramen brands increased by $0.2 million while revenue from restaurants operating under other brands increased by $0.5 million in 3Q18.
Japan Foods’ portfolio in Singapore fell to 48 restaurants as at Dec 31, from 50 restaurants a year ago.
As at end December, cash and cash equivalents stood at $18.4 million.
Looking ahead, Japan Foods says it is cautiously optimistic about the outlook for the next 12 months amid an operating environment that remains challenging due to tight labour supply, stiff competition, rising business costs, and an uncertain economic and geopolitical outlook.
“We are very conscious of the fact that customers have fickle palettes and what is popular today may not be popular tomorrow. Customer loyalty is important to us and this is why we are continuously innovating and seeking either to bring new franchise brands to Singapore or to develop new concepts ourselves,” says Takahashi Kenichi, executive chairman and CEO of Japan Foods.
Shares of Japan Foods close 2 cents lower, or down 4.5%, at 42 cents on Tuesday.
