SINGAPORE (May 10): Japan Foods Holdings announced 4Q18 earnings increased by 67.8% to $0.94 million compared to $0.56 million in 4Q17.
This brings FY18 earnings to $5.78 million, 24.0% higher than $4.66 million recorded in FY17.
Revenue for the quarter increased by 6.5% to $16.2 million from $15.2 million last year.
This was mainly due to higher revenue contribution from the group’s restaurants operating under the “Menya Musashi” brand, but was offset by a decrease in revenue contribution from restaurants operating under the “Ajisen Ramen” and “Osaka Ohsho” brands.
Cost of sales also increased 9.1% y-o-y to $2.46 million, bringing gross profit for 4Q18 to $13.7 million, 6.0% higher than $12.9 million in 4Q17.
Selling and distribution expenses were 3.6% higher y-o-y at $11.7 million, while administrative expenses were 8.7% higher y-o-y at $0.87 million, due to higher manpower cost, rental and online delivery charges.
Other operating expenses dropped 26.5% to $0.47 million from $0.64 million in the previous year, mainly due to absence of impairment charge in FY18, mainly due to absence of impairment charge.
The group is proposing a final dividend of 1.3 cents, which will be paid in Aug 2018. This brings the total dividend declared for FY18 to 2.1 cents.
Takahashi Kenichi, executive chairman and CEO of Japan Foods says, “We will continue to monitor the sales of individual stores carefully in order to maintain a healthy topline and sustainable bottomline.”
Shares in Fapan Foods Holding last traded at 50 cents on Wednesday.
