Japan Foods' profits soar 24.1% to $1.3m

Thanks to increased share results from its brands.

Increased costs didn't faze Japan Foods Holding (Japan Foods) in 1Q17, as profits jumped 24.1% YoY to $1.3m.

According to the company, earnings for the quarter was boosted by raised contribution from Japan Foods' Menya Musashi brand, as well as restaurants and food court outlets operating under other brands.

This was partly offset, though, by a drop in contributions from share results of Ajisen Ramen and Keika Ramen, as well as Osaka Ohsho.

Meanwhile, gross profit climbed 7.5% YoY to roughly $14.2m during the quarter.

Selling and distribution expenses inched up 4% YoY to $11.7m, administrative expenses surged 16.2% YoY to $800,000, while other operating expenses leaped 14.8% YoY to $418,000.

Looking forward, the business expects the operating environment of the Singapore food and beverage industry to remain challenging in the next 12 months on back of intense competition, tight labour supply, rising business costs and uncertain economic outlook.