Little change to Japan Foods Holding's Q2 net profit (Amended)

RESTAURANT operator Japan Foods Holding's net profit remained flat in the second quarter, despite a 4.7 per cent rise in revenue, as an increase in selling and distribution expenses offset most of the revenue gain.

The group posted a net profit of S$1.353 million for the three months ended Sept 30, up 0.4 per cent from a year ago.

Revenue stood at S$16.6 million, compared with S$15.9 million in the same period last year, due to contribution from a higher number of restaurants and an encouraging performance from new brands such as New ManLee Bak Kut Teh, Dutch Baby Cafe and Ginza Kutshi-Katsu.

Selling and distribution expenses rose 7.3 per cent in line with the increase in the number of restaurants to S$11.8 million.

Chief executive officer Takahashi Kenichi said that he was satisfied with the group's overall performance for the first half of the financial year. "Consumer sentiment has turned bearish because of recession fears, and this has made it very tough on the F&B (food and beverage) business," he said. "However I believe we are offering good quality food at reasonable price points, and this has enabled us to continue attracting diners to our restaurants."

The group declared a interim cash dividend of S$0.75 Singapore cent per share, representing a dividend payout ratio of 49.2 per cent on net profit in the first half of the financial year.

Amendment note: The headline for an earlier version of the article stated that it was Q3 results. It has been revised to reflect that these are Q2 results.