Japan Foods profits ride on ramen
Japan Foods Holding’s fourth-quarter net profit rose 67.8 per cent to S$938,000 (US$699,000) amid better sales from its Menya Musashi ramen restaurants and new brands.
For the full year to the end of March, net profit grew 24 per cent to $5.8 million while revenue increased 6.5 per cent to $16.2 million for the final quarter. That increase was partly attributable to improved returns from the Menya Musashi brand as Japan Foods converted two restaurants under other brands to Menya Musashi outlets, and opened a new restaurant at the Northpoint City mall in Singapore. One Menya Musashi restaurant was, however, converted to an Ajisen Ramen outlet in Bedok Mall in March 2017.
Japan Foods also recorded $1.6 million of extra revenue for the fourth quarter from new restaurants under the Curry is Drink and Shitamachi Tendon Akimitsu brands. However, restaurants under the Boteyju, Dutch Baby Cafe, Fruit Paradise, Hanamidori Kazokutei and New ManLee Bak Kut Teh brands saw revenue fall by $0.9 million during the period with closures and lower same-store sales.
Japan Foods says it is “cautiously optimistic” despite challenging conditions expected in the next 12 months. The group will continue to seek to expand in Southeast Asia and Japan through JVs, acquisitions and sub-franchising.