Japan Foods Q3 profit up 73%, in talks with potential JV partner in Indonesia

STRONG revenue growth gave a fillip to results for Japan Foods Holdings for its third quarter, which also said that it is in advanced talks with a potential joint venture partner in Indonesia.

Net profit for the quarter leapt 73.1 per cent to S$2.5 million from the year-ago period, the group said in a Singapore Exchange filing on Wednesday morning.

For the three months ended Dec 31, revenue rose 11.4 per cent to S$18.7 million from the preceding year. The expansion in revenue was due to strong contribution from its Ajisen Ramen, Menya Musashi and Shitamachi Tendon Akimitsu brands, it said.

Earnings per share grew to 1.44 Singapore cents from 0.83 Singapore cent in the preceding year.

The firm reduced its number of restaurants to 48 as at Dec 31, down from 50 a year earlier.

The strong sales and profit performance despite the lower number of restaurants is testament to the strength of its brands and effectiveness of its dynamic restaurant portfolio management, said its executive chairman and chief executive Takahashi Kenichi.

Japan Foods said that it is cautiously optimistic about the outlook for the next 12 months, and that the operating environment remains challenging due to the tight labour market, stiff competition, rising business costs and uncertain economic and geopolitical outlook.

The group added that it will continue efforts to improve operational efficiency and cost control, and to explore opportunities to expand its presence in Asean and Japan.

It is in advanced talks with a potential joint venture partner in Indonesia, and will make an announcement as and when appropriate.

The stock closed at 42 Singapore cents on Tuesday, down two cents or 4.5 per cent.