How Does Japan Foods Holding Ltd Earn Money?

Japan Foods Holding Ltd (SGX: 5OI) is an operator of Japanese restaurant chains. The company has a business presence in Singapore, Malaysia, Vietnam, Hong Kong, and China.

In this article, I want to give an overview of Japan Foods’ revenue composition as it is important for investors to understand how a company earns money.

The chart below shows a breakdown of Japan Foods’ revenue, according to its different brands, for its FY2016 (fiscal year ended 31 March 2016) and FY2017:

Source: Japan Foods FY2017 annual report

We can see that the biggest revenue contributor to the company in FY2107 was Ajisen Ramen. The aptly-named ramen restaurant chain accounted for 39.5% of Japan Foods’ total revenue of S$65.5 million in the year.

The next three biggest brands, namely, Menya Musashi, Osaka Ohsho, and New Man Lee Bak Kut Teh, collectively accounted for 37.9% of Japan Foods’ FY2017 revenue.

What’s also useful to note here is that New Man Lee Bak Kut Teh was the first non-Japanese food brand introduced by the company. has grown from scratch since its introduction in late 2015 to make up 5.5% of the company’s revenue in FY2017.

There are a number of moving parts with Japan Foods’ business. By having a better picture of the company’s revenue sources, investors will be in a better position to forecast the future business performance of the company.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.