Strong revenue growth gave a fillip to third-quarter results for Japan Foods Holding, which also said it is in advanced talks with a potential joint-venture partner in Indonesia.
Net profit for the quarter leapt 73.1 per cent to $2.5 million from the same period a year ago, the group said in a Singapore Exchange filing yesterday.
For the three months ended Dec 31, revenue rose 11.4 per cent to $18.7 million from the preceding year. The expansion in revenue was due to strong contribution from its Ajisen Ramen, Menya Musashi and Shitamachi Tendon Akimitsu brands, it said.
Earnings per share grew to 1.44 cents from 0.83 cent in the preceding year.
The firm reduced its number of restaurants to 48 as of Dec 31, down from 50 a year earlier.
The strong sales and profit performance despite the lower number of restaurants are testament to the strength of its brands and effectiveness of its dynamic restaurant portfolio management, said its executive chairman and chief executive Takahashi Kenichi.
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AT A GLANCE
REVENUE: $18.7 million (+11.4%)
NET PROFIT: $2.5 million (+73.1%)
Japan Foods said it is cautiously optimistic about the outlook for the next 12 months, and that the operating environment remains challenging due to the tight labour market, stiff competition, rising business costs, and uncertain economic and geopolitical outlook.
The group added that it will continue efforts to improve operational efficiency and cost control, and to explore opportunities to expand its presence in Asean and Japan.
The firm did not share further details on its talks with a potential joint-venture partner in Indonesia, except to say it will make an announcement as and when appropriate.
The stock yesterday closed at 46 cents, up four cents.