Other income increased by 89.9% y-o-y to $2.0 million, mainly attributable to royalty income, government grants under the Progressive Wage Credit Scheme and the Job Growth Incentive Scheme, interest income, insurance claims and compensation for relocation of a restaurant within VivoCity.
Overall cost and expenses increased, with selling and distribution expenses, operating expenses, lease interest expenses and impairment losses increasing during the period.
On the outlook, the group is in the view that the F&B industry in Singapore has been affected by the strong Singapore dollar, which has encouraged more Singaporeans to travel and spend overseas (in particular, Japan). The group expects its business environment to remain tough, with conditions further compounded by ongoing industry challenges including manpower shortages, rising costs of operations due to inflation and changing consumer preferences.
To overcome these challenges, the group plans to rationalise its brand portfolio by focusing on its more established and proven brands. In line with this turnaround strategy, the group has decreased the number of operating outlets from 84 as at Sept 30, 2024 to 82 as at Dec 31, 2024. The group will continue to streamline its operations, manage costs and improve outlet performance by stepping up on marketing and promotional efforts.
See also: F&N reports 1HFY2025 earnings of $84.1 mil 0.3% higher y-o-y
Shares in Japan Foods Holdingclosed at 34 cents on Feb 6.
