Japan Foods Holding has recorded a net profit of $668,000 in its 3QFY2024 ended December, down 79.4% from the $3.2 million recorded in its 3QFY2023.
This is despite higher revenue, which increased 11.8% y-o-y to $65.3 million due to expanded Halal offerings and a higher number of operating restaurants.
Gross profit increased by 11.8% to S$55.2 million in 3Q2024, in line with the increase in revenue. Group profit margin remained the same at 84.6%.
Cost of sales, on the other hand, grew by 11.5% y-o-y to $10 million.
The company’s selling and distribution expenses; administrative expenses; other operating expenses; and lease interest expenses for the period grew by 19.4%, 5.4%, 68.9%, and 62.5% y-o-y respectively.
Japan Foods expects the next 12 months to remain challenging due to economic headwinds. The hike in GST to 9% with effect from January may also lead to short-term cautionary response from consumers.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
To mitigate these challenges, the company will continue to focus its efforts on controlling raw material costs and on improving operational efficiency via streamlining of work processes and the adoption of technology.
Shares in Japan Foods closed 1 cent lower or 3% down on Feb 6 at 32 cents.
