Japan Foods' Q4 profit falls 68%, mainly on impairment charge

Singapore

A QUADRUPLING of "other operating expenses", which included a one-off impairment charge arising from store closures, has hurt bottom line earnings at Japan Foods. The restaurant operator reported a net profit of S$465,000 for the fourth quarter ended March 31, down 68 per cent from S$1.46 million a year ago.

This was despite revenue and gross profit rising by around 6 per cent each, as an impairment charge of S$810,000 of plant and equipment due to store closures and higher royalty fees as a result of more franchised brands led to a 338 per cent increase in other operating expenses to S$1.11 million. Share of results of associated firms also fell 30.2 per cent to S$196,000.