Earnings surge for Japan Foods’ Holding
Restaurant chain owner Japan Foods’ Holding achieved double-digit growth in both its top and bottom lines for its third quarter.
This was driven mainly by strong revenue contribution from its Ajisen Ramen, Menya Musashi and Shitamachi Tendon Akimitsu brands.
Earnings for the quarter, to the end of December, surged 73.1 per cent, with Menya Musashi contributing a revenue increase of S$1.2 million (US$900,500) and Shitamachi Tendon Akitmitsu contributing $1.7 million.
Sales for the quarter rose 11.4 per cent to $18.7 million.
Gross profit margin rose to 85.1 per cent from 84.9 per cent thanks to continuing efforts to control raw material costs, says the group.
For the nine months, there was strong growth in its net profit attributable to equity holders of the company, which rose to $4.8 million on the back of a 2.8 per cent increase in revenue to $51.7 million.
Japan Foods’ portfolio in Singapore ended the year with 48 restaurants, down two from 12 months earlier.
“That we were able to achieve strong sales and profit performance despite the lower number of restaurants is testament to the strength of our brands,” says executive chairman/CEO Takahashi Kenichi.
“We are particularly pleased with our Shitamachi Tendon Akitmitsu brand, launched in July at Plaza Singapura. Its performance has been so encouraging we have since added four more stores, in Northpoint City, Vivo City, Westgate and at Changi City Point which opened last month.
“Our flagship Ajisen Ramen brand has also performed strongly, partially through higher same-store sales following the revamp of some outlets into the Den by Ajisen Ramen brand.”
The group ended the year with two more restaurants taking its overseas network to 22, mainly because of the opening of five more Menya Musashi outlets in China. Hong Kong lost one restaurant when its tenancy agreement expired in March, taking the total there to eight.
There were also two restaurants in Malaysia and two in Vietnam run by sub-franchisees under the Ajisen Ramen brand. The group also has interests in eight restaurants in Hong Kong and 10 in China run by associated companies under the Menya Musashi brand.
Japan Foods last month added a self-developed brand to its portfolio, Curry is Drink. This concept offers both rice and udon sets with panko-crusted deep-fried meats or seafood served with curry sauce.
The group also launched its JFH Rewards program to replace the JFH Family Card.