Singapore-listed Japan Foods – operator of Ajisen Ramen – flags ‘substantial’ full-year loss
Sign up now: Get ST's newsletters delivered to your inbox
Japan Foods said it saw weak sales caused by market saturation and challenging macroeconomic conditions.
PHOTO: ST FILE
Follow topic:
SINGAPORE – Singapore-listed Japan Foods warned on May 5 that it expects to report a “substantial net loss” for financial year 2025 ended March 31, based on a preliminary review of the group’s unaudited management accounts.
The food and beverage group – whose brands include Ajisen Ramen and New ManLee Bak Kut Teh – blamed the poor performance on:
weak sales caused by market saturation and challenging macroeconomic conditions;
higher selling and distribution expenses due to increased manpower cost, utilities expenses, rental and depreciation charges; and,
impairment loss relating to non-performing outlets and write-off of fixed assets relating to the closure of certain outlets.
Further details of its financial performance will be disclosed when it announces its unaudited results.
On Feb 6, Japan Foods reported that higher operating costs pushed it into a net loss of $2.9 million for the nine months ended Dec 31, 2024, compared with a net profit of $668,000 previously.
Revenue fell 0.6 per cent to $64.9 million due to weak sales in November and December 2024.
The company said then that it may close more eateries as it continues to streamline operations and manage costs. The group had already cut the number of its outlets from 84 to 82 as at the end of 2024.
Japan Foods’ other franchised brands include noodle restaurant Menya Musashi, gyoza eatery Osaka Ohsho and teddy bear hotpot eatery Kumachan Onsen.
The group also recorded an allowance for impairment loss on a loan to a joint venture (JV) company, Dining Collective, of $680,000. It has decided to wind down the JV after reviewing the latter’s performance amid challenging market conditions.
In their May 5 statement, the group advised its shareholders and investors to exercise caution when dealing in the shares of the company.
Shares of Japan Foods fell 3.7 per cent, or one cent, to 26 cents as at 9.43am on May 5, after the announcement. THE BUSINESS TIMES
