Food Innovators is back in the black, posts a ‘modest’ H1 profit of S$200,000

The Japanese restaurant operator sank into the red for its latest financial year ended Feb 28, 2025, after its Catalist debut in October 2024

Restaurant operator Food Innovators announced on Wednesday (Oct 15) that it has returned to profitability for its first half ended Aug 31, 2025.

This recovery comes after the Japanese food and beverage (F&B) operator debuted on the Catalist board in October 2024 and sank into the red with a net loss of S$4.1 million for its full-year ended Feb 28, 2025.

For its first half of FY2026, the group reported a “modest” profit of S$206,000, turning around from a loss around S$1 million for the year-ago period, its financial statement indicated. This translated to an earnings per share of S$0.0018, against a loss per share of S$0.0106 for H1 FY2025.

The company, which focuses on Japanese cuisines across Asia, attributed the improvement to growth in its core business.

Its revenue for the six month period stood at S$23.8 million, a 10.5 per cent increase from S$21.6 million in the previous corresponding period. This was driven by growth in its restaurant leasing and subleasing businesses and its food retail business.

Revenue for the restaurant leasing and subleasing business segment grew 17.8 per cent on the year to S$10.4 million, amid the expansion of its sublease property portfolio. The food retail business segment recorded a 5.5 per cent year-on-year growth to its topline driven by stronger performance in Malaysia.

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The board did not declare a dividend for the six-month period due to its net loss for the latest financial year ended February.

“Although a modest profit of about S$206,000 was achieved in the current half year, the board considers it appropriate to retain the earnings for business use,” the group said.

On Wednesday, the group announced that it recently opened a new ramen restaurant under its Kanbe Ramen chain in Kuala Lumpur, Malaysia. The 1,502 square feet-outlet is located at the shopping mall, The Waterfront @ Desa ParkCity, and is the fourth outlet under the Kanbe Ramen brand.

It noted that the F&B landscape across its key markets remains “promising”, as rising tourism is set to continue to boost spending in the sector. It expects competition to “remain intense in the near term” but said that it is committed to leveraging its positioning to stay differentiated and competitive.

Food Innovators said it is “cautiously optimistic” about growth and intends to continue to expand its presence in existing and new markets.

Currently, the company manages 228 subleased properties in Japan and has 31 registered restaurants under its brand portfolio – including 14 restaurants in Japan, nine in Singapore and eight in Malaysia.

The counter closed on Wednesday S$0.009 or 4.5 per cent down at S$0.191, before the news.