Japan Foods sinks into the red with S$1.6 million net loss in H1

The group says net loss comes from higher year-on-year overall operating expenses

JAPAN Foods logged a S$1.6 million net loss for its first half ended Sep 30, from a profit of S$81,000 for the same period in the year prior. This came despite its revenue rising 1.1 per cent on the year to S$43.4 million for H1 FY2025, from S$43 million previously.

The group noted that its higher revenue came from strong performance in its halal segment, but this was partially offset by weaker revenue contributions from its non-halal segment. Its loss per share stood at S$0.0094, compared with earnings per share of S$0.0005 in the previous year.

On Thursday (Nov 14), the group said that its net loss was due to higher overall operating expenses, which rose 10 per cent on the year and affected its bottom line.

This was largely driven by selling and distribution expenses, which widened 9.8 per cent to S$35.9 million from S$32.7 million, due to higher depreciation charges of plant and equipment and right-of-use assets, as well as manpower and utilities costs.

Its other operating expenses rose to S$1 million from S$569,000, and its interest on lease liabilities climbed to S$844,000 from S$741,000.

The group did not propose any interim dividend per share for the current financial period in view of its net losses.

The company said that it expects the next 12 months to remain challenging due to economic headwinds; the food and beverage industry has also been beset by conditions such as intense industry competition, persistent manpower shortages, the high cost of raw materials and operation costs from inflationary pressures.

Japan Foods executive chair and chief executive Takahashi Kenichi said: “We will focus on improving per-store performance and profit recovery. We will also intensify efforts to manage our costs through the streamlining of our restaurant network and our operations for greater efficiency.”

Shares of Japan Foods closed flat on Wednesday at S$0.305 before news of its earnings results.

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