Japanese multi-brand food and beverage operator RE&S Holdings has reported earnings of $5.55 million in its 1HFY2023 ended December, 61.7% higher compared to the previous corresponding period.
Revenue grew by 23.5% y-o-y for 1HFY2023 to $88 million from $71.2 million in 1HFY2022, primarily due to higher contribution from both full-service restaurants (FSR) and quick service restaurants, convenience and others (QSR) segments.
This is on the back of the removal of social distancing restrictions, which increased the number of seats for dine-in customers. The revenue growth was also boosted by the opening of three new QSR outlets — Sushi-Go, Yaki Yaki Bo and Tsukimi Hamburg.
Revenue from FSR increased by 22.9% from $37 million in 1HFY2022 to $45.5 million in 1HFY2023 while QSR’s revenue grew by 24.2% to $42.5 million.
Due to the opening of the new outlets, operating expenses increased by 12.4% y-o-y to $55.5 million.
RE&S has declared an interim cash dividend of 0.9 cent per share.
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Its executive director and CEO Fenton Foo says the company has witnessed growing demand for retail concepts like its Kuriya Japanese Market and Gokoku Bakery outlets, as well as FSR outlets.
“Thus, we plan to open more new outlets and place focus on expanding both our FSR and QSR segments. In addition, we continually strive to expand our product offerings to meet the ever-evolving needs of consumers where we are targeting to open Singapore’s first Mister Donut outlet in May 2023. Mister Donut is the largest donut chain in Japan and it is famous for its mochi-like donuts,” says Foo.
Shares in RE&S closed flat on Feb 10 at 25 cents.
