Japan Foods Holding has reported a $1.6 million loss for its 1HFY2022 ended September, reversing from the $0.3 million earnings recorded the year before.
This translates to a loss per share of 0.94 cents for the period, compared to earnings per share of 0.17 cents the year before.
The losses recorded are despite higher revenue of $21.2 million logged for the period, up 14.5% y-o-y driven by higher revenues from brands including Afuri Ramen, Ichiro Ramen, Fruit Paradise and Yonehachi, as well as contributions from new halal brand Tokyo Shokudo.
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Japan Foods attributes the losses to lower government grants and lower rental concessions from landlords. Other income for the period was 50.2% lower y-o-y at $4.1 million.
The company has declared an interim dividend of 0.5 cents per ordinary share.
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Gross profit for the 1HFY2022 came in at $17.8 million, up 13.5% y-o-y, in tandem with higher revenue. Due partly to lower margin from some new brands and discounts given for takeaway orders during Singapore’s Phase 2 (Heightened Alert) restrictions that ran from July to August, gross profit margin declined 0.7 percentage points to 83.8% in 1HFY2022.
In respect to Japan Foods’ overseas associated companies, the group’s share of results increased to $258,000 in 1HFY2022 from $35,000 in HY2021 due to higher profits generated by Menya Musashi brand restaurants in China and Konjiki Hototogisu brand restaurants in Hong Kong. This was partially offset by share of losses from its Menya Musashi brand restaurants in Hong Kong and Indonesia.
Cash and bank balances stood at $18.2 million as of Sept 30.
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Japan Foods currently has 52 restaurants in Singapore as of Sept 30, down from 59 the previous year. Japan Foods’ overseas network comprised 24 restaurants including 20 Menya Musashi restaurants operated by associated companies in Indonesia, Hong Kong and China as well as four Konjiki Hototogisu restaurants in Hong Kong.
Shares in Japan Foods closed at 40.5 cents on Nov 2.
