Japan Foods posts $7.9m loss in FY2025

Revenue for also fell 3.2% YoY to $83.6m.

Japan Foods Holding Ltd. reported a net loss of $7.9m for the financial year ended 31 March 2025, widening sharply from the $0.5m loss in FY2024.

Revenue for FY2025 fell 3.2% year-on-year to $83.6m, compared to $86.4m in FY2024. The decline was driven by a reduction in contributions from non-Halal brands, which generated $41.5m, down from $45.6m the year before.

Meanwhile, Halal-certified restaurants posted a slight increase in revenue to $42.1m, up from $40.8m in FY2024.

Operating costs increased. Selling and distribution expenses rose 5.5% to $70.9m due to higher manpower, utility, rental, and depreciation costs. Other operating expenses also jumped 82.9% to $2.3m, mainly from renovation write-offs. Impairment losses nearly doubled to $3.6m due to underperforming stores and a joint venture loan write-down.

Despite the loss, the company remains debt-free, with cash and bank balances at $7.9m, down from $11.5m. The decline was due to spending on restaurant rebranding.

Other income rose 137.3% to $3.3m, helped by government grants. Profit from associated companies almost doubled to $0.5m, supported by better performance in Hong Kong and China.

The company cited weak consumer sentiment, high operational costs, and increased competition as key challenges. It added it plans to cut costs, streamline operations, and focus on improving store performance to turn the business around.