Japan Foods H2 loss widens to $6.2 million amid ‘challenging year’ for Singapore F&B
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The group noted that its selling and distributions expenses ticked up 1.4 per cent on-year to $35 million, from $34.5 million a year ago.
PHOTO: ST FILE
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SINGAPORE - Restaurant operator Japan Foods on May 25 reported a loss of $6.2 million for the second half ended March 31, sinking further into the red from a loss of $576,000 in the corresponding year-ago period.
This comes as the group’s revenue for the half slid 7.5 per cent year on year to $40.2 million, from $43.4 million.
The group attributed this to “tough market conditions”, as existing brands, including Yakiniku Shokudo, Ajisen Ramen and Menya Musashi, generated lower revenue.
Loss per share for the period stood at 3.6 cents, compared with a loss per share of 0.33 cent in the second half of the 2024 financial year.
The group did not declare a final dividend, despite declaring a 0.2 cent dividend per share in the second half of FY2024.
The group noted that its selling and distribution expenses ticked up 1.4 per cent on-year to $35 million, from $34.5 million a year ago, due to increases in manpower cost, utilities and depreciation charges.
Other operating expenses shot up 96.4 per cent to $1.3 million, from $670,000, due to the write-off of renovation costs as the group rebranded and closed some outlets.
Impairment losses more than doubled to $2.9 million, from $1.1 million, on impairment of certain non-performing stores.
On a full-year basis, revenue declined 3.2 per cent to $83.6 million, from $86.4 million a year ago.
Its full-year loss enlarged to $7.9 million, from $495,000 the year before.
Japan Foods noted that FY2025 was a challenging year for the retail scene in Singapore.
Consumer sentiment became increasingly cautious due to prolonged geopolitical tensions and inflationary pressures that had increased the cost of living, said the group.
“In the F&B space, the fall in consumer discretionary spending, intense market competition from a continuous stream of new entrants (including an influx of international brands), as well as the increasing costs of operations had toughened market conditions,” said the group.
Mr Takahashi Kenichi, executive chairman and chief executive of Japan Foods, said the group will “continue to execute (its) turnaround strategy”, such as rationalising its brand portfolio to focus on more established and proven brands, and not renewing or pre-terminating leases of non-performing outlets.
“During FY2025, we reduced the number of outlets from 84 as at Sept 30, 2024, to 78 as at March 31, 2025,” he said.
Shares of Japan Foods climbed 2.4 per cent or 0.5 cent to 21.5 cents on May 23. THE BUSINESS TIMES
