As at Sept 30, the company runs a total of 84 outlets, up from 72 outlets same time last year.
Japan Foods also announced that it has shut down its joint venture with the Dining Collective, a joint venture with Minor Food Group (Singapore), given the weak performance, and has made a provision of $680,000.
“Looking ahead, 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," says Japan Foods' executive chairman and CEO Takahashi Kenichi.
The company expects the operating environment to remain "challenging" no thanks to higher inflation that has curbed consumer spending even as competition remains intense.
See also: Jardine Matheson posts loss of US$468 mil, but underlying net profit stood at US$1.47 bil
Nonetheless, Japan Foods notes that with its zero gearing and cash balance of $10.1 million, it can continue to deal with the challenges and continue to optimise its operations.
As part of its overall growth plans, the company in 1HFY2025 launched two new franchised brands. The first is “Tororitenshi
no Warabi Mochi” which specialises in warabi mochi and has more than 140 stores across Japan.
The second new brand is “Kumachan Onsen” is a hotpot concept from Tokyo that features a teddy bear-shaped broth that melts into a rich collagen soup base.
Japan Foods shares last traded at 31 cents, down just over 10% year to date.
