Japan Foods records 46.4% rise in H2 profit to S$4.9m

JAPAN Foods Holding : 5OI 0% on Wednesday (May 25) posted net profit of S$4.9 million for the 6 months ended March 2022, representing a 46.4 per cent increase from S$3.3 million in H2 FY2021.

Revenue for the half-year period grew 2.9 per cent to S$33.4 million compared to S$32.5 million the previous year, as revenue from the group’s new halal restaurant brand Tokyo Shukudo increased after an expanded number of outlets. This more than offset lower revenue generated by the other restaurant brands under the group’s portfolio.

Gross profit for H2 grew 3.2 per cent on-year to S$28.4 million from S$27.6 million, while the group’s gross profit margin increased 0.2 percentage point to 85.1 per cent due to price adjustments in certain menu items.

Higher other income was also recorded on the back of rental support payouts.

Selling and distribution expenses and administrative expenses both grew by 2 per cent and 22.7 per cent, respectively, mainly due to higher manpower costs.

Over H2, the group’s share of loss of associated companies grew to S$176,000 from just S$2,000 the previous year. This was attributed to higher losses incurred by its Menya Musashi brand restaurants in China and Hong Kong as a result of Covid-19 movement restriction measures which had been implemented since February 2022.

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Earnings per share for H2 stood at 2.79 Singapore cents, compared to 1.91 cents the previous year.

The latest set of results brings the group’s FY2022 net profit to S$3.2 million, down 10.8 per cent from S$3.6 million in FY2021. 

Revenue for the full year grew 7.1 per cent to S$54.6 million from S$51 million previously, due to the seasonally stronger second-half performance.

A final dividend of 1.35 Singapore cents per share has been proposed. Together with the interim dividend of half cent paid out in December 2021, this brings the total dividend for FY2022 to 1.85 cents per share, down from 2.5 cents in FY2021.

Commenting on the latest set of results, Japan Foods chief executive and chairman Takahashi Kenichi said the group’s performance and responses to its halal brands have been “extremely” encouraging, and that the group has put in more resources to grow this market segment.

“At the same time, we are expanding our network and brand portfolio to capture the recovery and upswing in business and leisure activities in line with the relaxation of Covid-19 restrictions,” he added.

Japan Foods ended Tuesday S$0.005 or 1.2 per cent higher at S$0.42.