Japan Foods Holdings saw a better 2HFY2021 ended March following the relaxation of Covid-19 measures, resulting in a reversal from a loss of $0.5 million in 2HFY2020 to earnings of $3.3 million on the back of revenue that grew 0.5% y-o-y to $32.5 million.
This brings its FY2021 earnings to $3.6 million, up 256% from the previous period.
Earnings per share (EPS) came in at 1.9 cents for the 2HFY2021 and 2.1 cents for FY2021 respectively.
Despite the slight increase in revenue for the 2HFY2021, Japan Foods’ revenue for the full year decreased 25.4% y-o-y to $51 million, given its weaker 1HFY2021 which saw sales plunge 48.7% y-o-y to $18.5 million.
In tandem with the lower revenue, gross profit fell 25.2% y-o-y to $43.2 million in FY2021, while gross profit margin remained stable at 84.7%, compared to 84.4% the previous year.
However, the group’s earnings were boosted by government grants arising from the Jobs Support Scheme and foreign workers’ levy rebates and receipt of rental concession amounting to a total of $10.3 million
In addition, expenses fell across the board mainly due to a smaller number of restaurants, which fell from 59 as of end-FY2020 to 50 as of end-FY2021.
To that end, pbt grew 203% y-o-y to $4.2 million.
SEE:Japan Foods posts 80.2% drop in 1H earnings to $0.3 mil; plans to invigorate portfolio
Food Holdings’ net asset value per share stood at 19.14 cents as of Mar 31, compared to 18.03 the previous year. Cash and bank balances stood at $23.1 million, compared to $20.4 million as of Mar 31, 2020.
The board has recommended a final dividend of 1.75 cents per share, which together with the interim dividend of 0.75 cents per share paid out in December 2020, brings FY2021 total dividend to 2.5 cents per share, or 120.1% of net profit for the financial year.
In its press release accompanying the results, Food Holdings states that it plans to revise its dividend payout ratio to at least 100% of earnings annually, up from 50% previously, which will be applicable from FY2022.
Looking ahead, the group highlights that the recent tightening in Covid-19 measures which includes prohibition of dining-in at all F&B outlets until June 13 are expected to impact the group’s revenue for its duration.
“Depending on the how fast the public health situation is managed, it is unclear at this point if these heightened measures will be extended beyond June 13. The bulk of our revenue has always been derived from dine-in customers. Not being able to serve our customers at our outlets will adversely affect us,” says Takahashi Kenichi, executive chairman and CEO of Japan Foods.
“However, this is not something we have control over and so we will continue to deploy our resources carefully and focus on prioritising staff and customer safety, as well as boosting food deliveries and takeaway orders through our marketing and promotion efforts, which will include reaching out to our 280,000 JF Rewards loyalty programme members,” he adds.
As at 9.13am, shares in Food Holdings are trading flat at 39 cents.
