Japan Foods reports higher revenue but lower earnings in FY2022 due to higher costs and lower rental concessions
Japan Foods Holding reported a 7.1% year-on-year increase in revenue to $54.6 million for the year ended March 31, 2022, the company's FY2022. The revenue increase during the period under review was driven mainly by a seasonally stronger second half and the performance of Japan Foods’ new Halal segment, which grew from one restaurant under one brand in November 2020 to nine restaurants under three brands as at end-March 2022, contributing 20.5% to total revenue.
Goss profit in FY2022 rose 6.9% y-o-y to $46.2 million, while gross profit margin remained at 84.6%. In FY2022, the Group’s associated companies also had a good showing, contributing share of profit of $83,000 compared to $33,000 in FY2021.
Restaurants in Hong Kong operating under the “Hototogisu” had generated higher earnings, partially offset by share of loss of restaurants operating under the “Menya Musashi” brand in China, Hong Kong and Indonesia. In line with its expanded Singapore network and the increase in business as Covid-19 restrictions were relaxed, selling and distribution and administrative expenses rose 1.4% and 19.2% respectively in FY2022 mainly due to higher manpower and operating costs as the Group ramps up its operations, while other income fell 34.0% y-o-y mainly due to lower government grants under the Job Support Scheme and lower rental concessions from landlords. As a result, net profit declined 10.8% y-o-y to $3.2 million in FY2022.
Earnings per share fell to 1.85 cents as at end-March compared with 2.08 cents in the previous year. Net asset value per share eased to 18.75 Singapore cents as at Mar 31 compared with 19.14 cents at end-March 2021. The Group remained debt free and reported a slight increase in cash and cash equivalents to $23.2 million at end-March. A final dividend of 1.35 cents per share has been proposed. Total dividend for FY2022 is 1.85 cents, representing a 99.8% payout.