The group&rsquo s revenue falls 0.6% to S$64.9 million due to weak sales in November and December

JAPAN Foods sank into the red with a net loss of S$2.9 million for the nine months ended Dec 31, 2024, compared with a net profit of S$668,000 in the corresponding year-ago period.

 

This was mainly due to higher operating expenses, attributed to an increased number of operating outlets in the 9M period, the group said on Thursday (Feb 6).

 

Japan Food&rsquo s revenue fell 0.6 per cent to S$64.9 million, from S$65.3 million in the same period the year before, due to weak sales in November and December.

 

Selling and distribution expenses rose 8.3 per cent to S$53.9 million, from S$49.8 million, due to higher manpower costs, utilities expenses and depreciation charges of right-of-use assets, in line with the increased number of operating outlets.

 

Other operating expenses increased 90 per cent to S$1.5 million in the same period, from S$770,000, mainly due to an increase in the write-off of plant and equipment attributable to the rebranding and closure of restaurants, as well as the relocation of a restaurant in VivoCity mall.

 

Lease interest expenses rose 6.7 per cent to S$1.24 million, from S$1.16 million, due to a higher number of operating outlets in the period.

 

Japan Foods also recorded an allowance for impairment loss on a loan to a joint venture (JV) company, Dining Collective, amounting to S$680,000. This is after its assessment, inter alia, of the performance of the outlets under the JV and challenging market conditions, which led to the decision to wind down the business of the JV.

 

The group said the local food and beverage industry has been affected by the strong Singapore dollar, which encouraged more Singaporeans to travel and spend overseas.

 

It expects the business environment to remain tough, with conditions further compounded by ongoing industry challenges including manpower shortages, rising costs of operations due to inflation, and changing consumer preferences.

 

To overcome these difficulties, the group plans to rationalise its brand portfolio by focusing on its &ldquo more established and proven brands&rdquo , it said.

 

It has already decreased the number of operating outlets to 82, from 84, as at Dec 31, 2024.

 

The group will continue to streamline its operations, manage costs and improve outlet perfromance by stepping up its marketing and promotional efforts, it said.

This was mainly due to weak sales in November and December 2024, despite a higher number of operating outlets

 

JAPAN Foods expects to report a loss for its nine months ended Dec 31, 2024, mainly due to lower revenue and higher selling and distribution expenses.

 

In a bourse filing on Friday (Jan 24), the company said revenue for the period was lower than the previous corresponding period in 2023, mainly due to weak sales in November and December 2024, despite a higher number of operating outlets.

 

Meanwhile, in line with the higher number of operating outlets, selling and distribution expenses were higher mainly due to increases in manpower costs, utilities expenses and depreciation charges.

 

The company noted that this is only a preliminary assessment further details of its financial performance will be disclosed when it announces its business and financial update, it said.

The group says net loss comes from higher year-on-year overall operating expenses

 

JAPAN Foods logged a S$1.6 million net loss for its first half ended Sep 30, from a profit of S$81,000 for the same period in the year prior. This came despite its revenue rising 1.1 per cent on the year to S$43.4 million for H1 FY2025, from S$43 million previously. 

 

The group noted that its higher revenue came from strong performance in its halal segment, but this was partially offset by weaker revenue contributions from its non-halal segment. Its loss per share stood at S$0.0094, compared with earnings per share of S$0.0005 in the previous year. 

 

On Thursday (Nov 14), the group said that its net loss was due to higher overall operating expenses, which rose 10 per cent on the year and affected its bottom line. 

 

This was largely driven by selling and distribution expenses, which widened 9.8 per cent to S$35.9 million from S$32.7 million, due to higher depreciation charges of plant and equipment and right-of-use assets, as well as manpower and utilities costs. 

 

Its other operating expenses rose to S$1 million from S$569,000, and its interest on lease liabilities climbed to S$844,000 from S$741,000. 

 

The group did not propose any interim dividend per share for the current financial period in view of its net losses. 

 

The company said that it expects the next 12 months to remain challenging due to economic headwinds the food and beverage industry has also been beset by conditions such as intense industry competition, persistent manpower shortages, the high cost of raw materials and operation costs from inflationary pressures. 

 

Japan Foods executive chair and chief executive Takahashi Kenichi said: &ldquo We will focus on improving per-store performance and profit recovery. We will also intensify efforts to manage our costs through the streamlining of our restaurant network and our operations for greater efficiency.&rdquo  

Its full-year loss stands at S$495,000 as enlarged operations swell expenses

 

JAPAN Foods has sunk into the red with a net loss of S$576,000 for its second half-year ended March, after having chalked up a net profit of S$1.8 million in the previous half-year.

 

The loss came mainly from selling and distribution expenses being 14.7 per cent higher, at S$34.5 million, despite a 7 per cent rise in revenue to S$43.4 million for the half year, based on the group&rsquo s financials released on Friday (May 24).

 

Loss per share for the period stood at S$0.0033, from an earnings per share of S$0.0103 the previous year.

 

A final dividend of S$0.002 per share was proposed for the half-year for shareholders&rsquo approval at its upcoming annual general meeting. Together with an interim dividend of S$0.003 per share, it will take the total dividend for FY2024 to S$0.005 per share. The date payable will be announced later.

 

Additionally, the board is revising the company&rsquo s dividend policy to distribute dividends of at least half the group&rsquo s audited consolidated net profit attributable to shareholders for the current financial year ending Mar 31, 2025, and after. This is, however, subject to the group&rsquo s business requirements and other considerations, and barring unforeseen circumstances.

 

For FY2024, the group&rsquo s net loss stood at S$495,000, compared with a net profit of S$4.1 million in FY2023. This was despite a 10 per cent rise in its top line to S$86.4 million, driven by the expansion of its restaurant network to 79 restaurants from 65 in FY2023.

 

The net loss was mainly due to a 17.7 per cent year-on-year increase in selling and distribution expenses due to higher manpower costs, utilities expenses and depreciation charges of plant and equipment and right-of-use assets, said the group.

 

In addition, the group also incurred a write-off of renovation costs from the rebranding of outlets, impairment loss relating to certain non-performing stores, and impairment loss on a loan provided to a joint-venture company upon the cessation of the &ldquo Siam Smith&rdquo brand restaurant in Tokyo.

 

Japan Foods noted that the &ldquo significant&rdquo expansion in its restaurant network and brand portfolio will contribute to the group&rsquo s future revenue growth, and that the increase in the number of halal-concept restaurants would solidify its position in this segment of the market.

 

&ldquo The group expects the next 12 months to remain challenging due to prevailing market conditions. These include intense industry competition, the persistent manpower crunch and high raw material and operational costs arising from inflationary pressures,&rdquo it said.

 

Takahashi Kenichi, executive chairman and chief executive officer of Japan Foods, said the company went into an aggressive expansion of its network partly because opportunities to secure good locations came up.

 

&ldquo Looking ahead, our network expansion is likely to be at a more measured pace as we shift our focus to improving profitability by driving the performance of individual restaurants, while exercising financial prudence to manage our expenses,&rdquo he said.

 

Japan Foods Holding has recorded a net profit of $668,000 in its 3QFY2024 ended December, down 79.4% from the $3.2 million recorded in its 3QFY2023.

 

This is despite higher revenue, which increased 11.8% y-o-y to $65.3 million due to expanded Halal offerings and a higher number of operating restaurants. 

 

Gross profit increased by 11.8% to S$55.2 million in 3Q2024, in line with the increase in revenue. Group profit margin remained the same at 84.6%.

 

Cost of sales, on the other hand, grew by 11.5% y-o-y to $10 million.

 

The company&rsquo s selling and distribution expenses administrative expenses other operating expenses and lease interest expenses for the period grew by 19.4%, 5.4%, 68.9%, and 62.5% y-o-y respectively. 

 

Japan Foods expects the next 12 months to remain challenging due to economic headwinds. The hike in GST to 9% with effect from January may also lead to short-term cautionary response from consumers. 

 

To mitigate these challenges, the company will continue to focus its efforts on controlling raw material costs and on improving operational efficiency via streamlining of work processes and the adoption of technology. 

 

Yet another Singapore-listed company has announced it has been hit by a cyberattack.

 

Japan Foods Holdings, in an announcement on Jan 22, says it was the subject of a ransomware incident where an unknown party gained unauthorized access to its servers and encrypted information within.

 

The incident impacted the data stored on the servers, and the company is in the process of restoring the data.

 

The incident was detected on Jan 19 when the company' s employees reported issues with a software application.

 

The company hired consultants and made a police report.

 

Just on Jan 11, another Singapore-listed F& B player RE& S reported it was hit by ransomware attacks.

 

Offshore and marine firm ES Group (Holdings) reported on Jan 5 it was hit similarly hit. 

 

IPS Securex on Jan 2 announced it was hit.

RHB Bank Singapore' s Shekhar Jaiswal has downgraded Japan Foods Holdings to " neutral" from " buy" after it reported lower-than-expected earnings for 1HFY2024 on higher costs.

 

Along with the downgrade, Jaiswal, in his Dec 8 note, cut his target price for the company, led by chairman and CEO Takahashi Kenichi (picture), to 30 cents from 45 cents.

 

Nonetheless, the company, which is actively expanding its number of outlets, might just " yield an upside surprise."

 

In his Dec 8   note, Jaiswal points out that the company' s lower earnings for the half year ended Sept 30, no thanks to the delayed impact of inflation that started earlier in the year.

 

For its half year ended Sept, Japan Foods generated a 13% y-o-y increase in revenue to $43 million. However, higher-than-expected costs sent earnings down 60% y-o-y to $872,000, missing Jaiswal' s projection of $3 million.

 

In line with the lower earnings, the company cut its interim dividend to 0.3 cents from 1 cent paid this time last year.

 

Jaiswal expects cost pressures to persist. Besides the delayed impact of the inflation, the company is incurring costs with its active expansion as well, from 72 outlets at the end of 1HFY2024 to between 77 - 78 by the end of the current FY.

 

" This, in addition to the manpower constraints, will keep operating costs high in the near term. The addition of new stores would also lead to higher-than-normal capex and elevated depreciation expenses," warns Jaiswal.

 

Nonetheless, there are some " bright spots" . For example, Japan Foods has a thriving business selling halal food, with the number of outlets catering to this segment doubling in 1HFY2024.

Two of the halal concept outlets were the ones generating the most revenue growth in 1HFY2024.

 

Given the promising results, Japan Foods plans to continue focusing its expansion plans on halal-concept restaurants, to account for more than half of its total revenue by the end of the current FY2024.

 

While Jaiswal expects the expansion of its halal restaurants, moderation in inflation, and improvement in Singapore&rsquo s economic growth to boost earnings, confirmation of this trend will only be visible in FY2025 ending June 2025. " Therefore, we prefer to reassess our views post FY2024 results," he says.

 

Taking a conservative stance, he cut his FY2024 and FY2025 profit estimates by 63% and 38% respectively.

JAPAN Foods posted a net profit of S$81,000 for the first half ended September, representing a 96.5 per cent decline from S$2.3 million in the previous year.

 

Earnings per share fell 96.3 per cent to S$0.0005, from S$0.0134 a year earlier.

 

On Friday (Nov 10), the food and beverage group said this was mainly due to a net increase in operating expenses from its expanded restaurant network, coupled with the provision of a one-off S$791,000 impairment loss.

 

The impairment loss was related to a loan made to its joint-venture company with Minor Food Group Singapore, to operate a Siam Smith brand restaurant in Tokyo. This Tokyo restaurant ceases operations this month, felled by &ldquo adverse operating conditions&rdquo in the market, said Japan Foods.

 

Revenue for the half year grew 13.2 per cent to S$43 million from S$38 million a year prior, boosted mainly by higher contributions from the group&rsquo s halal segment.

 

In line with the topline increase, gross profit climbed 12.8 per cent to S$36.3 million from S$32.2 million. Gross profit margin, however, fell 0.3 percentage point to 84.4 per cent over the half-year period due to higher materials costs.

 

Selling and distribution expenses grew 21 per cent on the year to S$32.7 million from S$27 million as a result of higher manpower costs, utilities expenses, as well as depreciation charges of plant and equipment and right-of-use assets.

 

Administrative expenses rose 10.6 per cent to S$2 million from S$1.8 million, as a result of higher manpower costs with the group&rsquo s expanded business operations.

 

Takahashi Kenichi, executive chairman and chief executive of Japan Foods, said: &ldquo To lay the groundwork for future growth, Japan Foods has been on expansion mode since the lifting of Covid-19 restrictions in April 2022. As a result, we incurred higher capital expenditure and our operating expenses rose in line with our expanded business activities.&rdquo

 

The group has proposed an interim dividend of S$0.003 per share for the current financial period, down from its S$0.01 per-share dividend for H1 in the previous financial year.

 

Japan Foods said it expects the next 12 months to be challenging due to prevailing conditions faced by the food and beverage industry, such as &ldquo intense competition, a manpower crunch and rising cost of operations resulting from inflationary pressures&rdquo . 

 

To mitigate such challenges, the group said it will continue to focus on controlling raw materials costs, and on improving operational efficiency by streamlining work processes and adopting technology.

 

RHB Research lowered its medium-term profit forecasts for food and beverage group to account for higher operating costs, resulting in a target price cut to S$0.45 from S$0.65 previously.

 

Analyst Shekhar Jaiswal slashed his profit forecasts by 37 per cent to 50 per cent from FY2024 to FY2026, after the group&rsquo s financials for the first quarter of FY2024 ended June &ldquo significantly&rdquo missed RHB&rsquo s expectations.

 

&ldquo The rise in expenses was mainly due to higher manpower costs, utility expenses, and depreciation charges of the right-of-use assets in line with higher revenue and business activities,&rdquo noted Jaiswal in a report on Tuesday (Sep 5). 

 

&ldquo While we expect the selling and distribution expenses to moderate, it may still come in higher in FY2024,&rdquo he added. 

 

Nonetheless, Jaiswal maintained his &ldquo buy&rdquo rating on the Singapore-listed stock, as he expects the group to register strong sales growth. 

 

This should be driven by the expansion of its halal restaurant brands, which have had strong customer demand and growth in revenue contributions, in Jaiswal&rsquo s view.

 

He also believes Japan Foods will maintain a close to 100 per cent dividend payout ratio from FY2024 to FY2026.

 

This implies a dividend yield of 5 per cent which would, in turn, provide &ldquo strong support (to the stock&rsquo s) share price at current levels&rdquo , said Jaiswal.

 

Japan Foods operates restaurants including Ajisen Ramen and Tokyo Shokudo.

 

RHB Bank Singapore analyst Shekhar Jaiswal is keeping &ldquo buy&rdquo on Japan Foods 5OI 0.00% , lifting his target price to 65 cents from 60 cents previously.

 

In his May 29 note, Jaiswal highlights that Japan Foods had reported a strong end to its FY2023 ended March with a record revenue of $78.5 million, up 44% y-o-y. This is on the back of strong momentum of its halal segment, the addition of new brands to its portfolio, as well as positive same-store sales growth for most of its brands.

 

&ldquo This was ahead of our expectation and is the highest revenue Japan Foods has ever reported since its inception in 1997. However, thanks to higher selling, operations and lease interest expenses, the reported profit of $4.1 million came in line with our expectations,&rdquo Jaiswal says.

 

Japan Foods&rsquo share of associated and joint venture companies also witnessed a 147% growth y-o-y amid the lifting of Covid-19 restrictions in Hong Kong. The company had declared a final dividend of 1 cent per share, Jaiswal notes.

 

Moving forward, Jaiswal expects Japan Foods to deliver 7% revenue growth in FY2024 on the back of an increase in the number of stores. The company should also see positive effects from its expansion into halal concept restaurants &mdash in order to increase operational efficiency, Japan Foods has to put in place a central kitchen specifically for halal restaurants, the analyst adds.

 

&ldquo We believe it will be able to maintain its gross margin at about 84.6%. We are expecting inflationary pressures to moderate in FY2024, which should translate into an expansion in its net margin to about 6% from 4% in FY2023. We estimate net profit to increase to $5.5 million from $4.1 million in FY2023,&rdquo says Jaiswal.

 

RHB has upgraded Japan Foods&rsquo FY2024 and FY2025 profit estimates by 8% and 9% respectively.

 

While the company has paid 85% of its net profit as dividends in its FY2023, the analyst expects it to maintain close to 100% dividend payout during the forecast period, implying a dividend yield of 5%. RHB views its ex-cash FY2024 P/E of 10.4 as compelling, given Japan Foods&rsquo robust growth potential.

Japan Foods Holding has reported earnings of $4.1 million for the year ended March 31, up 27.7% over the preceding FY2022. Revenue in the same period was up 43.8% y-o-y to a record $78.5 million.

 

The company attributes the better showing to generally higher sales across its various outlets, the addition of new brand concepts and most importantly, strong momentum from its outlets catering to the halal segment.

 

The halal segment contributed around a third of the company' s total revenue in FY2023, versus around a quarter in the preceding FY2022.

 

The company plans to pay a final dividend of a cent, bringing full year payout for FY2023 to two cents. As at March 31, the company remained debt-free with cash of $18.5 million.

 

Executive chairman Takahashi Kenichi says he is encouraged by how quickly the company' s revenue bounced back from the pandemic to hit a record since it started operating in 1997.

 

" It affirmed our strategy to enter the Halal segment and also demonstrated the resilience of our business against Singapore&rsquo s highly competitive F& B landscape," says Takahashi.

 

" We will continue to refresh our brand portfolio by regularly introducing new brands and rejuvenating existing ones while assessing each brand' s performance by location so that

we can manage our restaurant portfolio to achieve the best results," he adds.

 

Going foward, the company believes its performance will continue to reflect post-pandemic recovery and also the return of tourism following the opening of borders.

 

However, inflationary pressures will result in higher operating costs in materials and manpower.

 

For the current FY2024 ending March 2024, Takahashi expects full year revenue contributions from the brands that were launched in the last FY, with the fastest growth from the halal segment.

 

" Having served customers in this market for about 2.5 years now, we have a deeper understanding about their tastes and spending patterns and I believe we will be able to

cater to their needs even better," adds Takahashi.

 

As at March 31, the company operates 65 on its own in Singapore and 3 restaurants as joint ventures. It has 17 outlets across China and Indonesia through associates and 1 operated in Malaysia as a sub-franchisee.

 

JAPAN Foods Holding : 5OI -2.3% recorded net profit of S$3.2 million for the first nine months of FY2023, up 94.5 per cent from S$1.7 million the previous year, on the back of higher revenue.

 

The Catalist-listed restaurant chain operator on Friday (Feb 10) said revenue grew 54.1 per cent year on year to S$58.4 million from S$37.9 million. 

 

This was mainly attributed to positive responses to the group&rsquo s expanded Halal segment, and boosted further by the lifting of Covid-19-related restrictions. Japan Foods now has 21 restaurants that are Halal-certified and believes this will continue to be a growing segment for the group. 

 

Gross profit grew by 54.7 per cent to S$49.4 million from S$31.9 million previously, while gross profit margin rose slightly by 0.3 percentage point to 84.6 per cent. 

 

Overall expenses rose in line with revenue growth and increased business activities, with selling and distribution expenses up 26.9 per cent to S$41.7 million due to higher manpower costs, utilities and the depreciation of right-of-use assets.  

 

Other income fell by 89.6 per cent to S$0.7 million from S$6.6 million, in the absence of rental rebates as well as grants under the government&rsquo s Jobs Support Scheme. 

 

Japan Foods&rsquo share of profit of its associated companies also fell by 54.3 per cent to S$139,000 from S$304,000 the previous year, mainly due to losses incurred by associated companies in China due to the country&rsquo s Covid restrictions. 

 

The response to the group&rsquo s recent commencement of operations at its store in Japan &ndash which is franchised and operates through its joint venture with Minor Food Group &ndash was not within its expectations, added the group.

 

Japan Foods said it expects the overall food and beverage industry as well as the group&rsquo s topline to reflect an increase in dine-in customers, amid Singapore&rsquo s normalisation post Covid-19. It, however, expects the operating environment to remain challenging in the near term due to intense competition, manpower shortages, an uncertain economic outlook and higher cost of operations. 

 

&ldquo To cushion our bottom line against rising costs, we will intensify our efforts to manage our expenses and maintain our healthy balance sheet, while continuing to establish a compelling portfolio of brands, concepts and locations that appeal to customers,&rdquo the group said.

 

RHB Group Research is keeping its &ldquo buy&rdquo recommendation on Japan Foods Holding with an unchanged target price of 60 cents, following SingStat&rsquo s latest retail numbers, which saw Singapore&rsquo s restaurant industry maintaining its growth momentum in October, as it registered 61.1% y-o-y sales growth for the month.

 

Analyst Shekhar Jaiswal says: &ldquo While we expect the rate of growth to moderate, we still expect the industry to deliver positive growth in 2023. Japan Foods&rsquo strong balance sheet, which has helped it to survive the pandemic, its ability to sustain strong gross margins, and its recent expansion into halal restaurant brands should continue to support strong profit growth during FY2023 to FY2025.&rdquo

 

Despite the current high inflationary background, the group&rsquo s margins have held up well. Jaiswal says, &ldquo We believe Japan Foods&rsquo standardised food inputs across all its operations, an efficient central kitchen operation, and improved labour productivity should enable it to maintain its margins.&rdquo

 

In the group&rsquo s 1HFY2023 ended September, gross margins widened to 84.7% from 83.8% in 1HFY2022, despite inflation. To offset some rise in input costs, the group is gradually passing on higher costs to customers by raising its prices as the demand remains strong.

 

Meanwhile, Japan Foods has expanded its halal restaurant offering and grown the number of its halal restaurants from six in 1HFY2022 to 12 in 1HFY2023. It also expanded its portfolio of halal brands to five as of October.

 

Its halal restaurant contributed a net revenue increase of $6.4 million in 1HFY2023 to $9.6 million and accounted for 25.2% of the group&rsquo s total revenue for the period.

 

&ldquo We see this segment as an untapped market that offers strong growth potential,&rdquo says Jaiswal.

 

In FY2022, Japan Foods paid 100% of its net profit as dividends, which the analyst expects the group to maintain in FY2023 to FY2025, given its strong performance. This implies a dividend yield of over 5%, which is higher than what the Singapore market offers.

 

Jaiswal also views the stock&rsquo s ex-cash FY2023 P/E of 12x as compelling, given its robust growth potential.

 

JAPAN Foods Holdings recorded a net profit of S$2.3 million for the first six months of FY2023, reversing its net loss of S$1.6 million recorded in the equivalent period a year ago due to a significant increase in revenue. 

 

The Catalist-listed restaurant chain operator on Wednesday (Nov 9) announced a 79 per cent year-on-year growth in revenue to S$38 million from S$21.2 million. Its topline was driven largely by relaxed Covid-19 dining measures and a net revenue growth of S$6.4 million in its new segment of halal eateries.

 

Its four flagship brands also saw net revenue increases for the period, with Ajisen Ramen recording the largest at S$3.3 million. Menya Musashi, Konjiki Hototogisu, and Osaka Ohsho posted net increases of S$0.9 million, S$1.6 million, and S$1.1 million respectively.

 

Restaurants operating under other brands booked a S$3.8 million net increase in revenue. 

 

While its gross profit grew 80.9 per cent year on year to S$32.2 million from S$17.8 million, Japan Foods : 5OI 0%&rsquo other income decreased by 88.1 per cent to S$0.5 million from S$4.1 million in H1 FY2022. This was due to lower government support grants and rental concessions from landlords. 

 

Despite markedly higher selling and distribution expenses of S$27 million compared to S$21.3 million the year before, the group&rsquo s gross profit margin grew 0.9 percentage point to 84.7 per cent due to the absence of discounts granted for takeaway orders the previous year. 

 

Earnings per share for the half-year stood at 1.34 cents, and an interim dividend of 1 Singapore cent was declared. 

JAPAN Foods Holding : 5OI 0%&rsquo s subsidiary, Japan Foods Enterprises (JFE), is suspended from applying for and renewing work passes as the Ministry of Manpower (MOM) has launched an investigation into its hiring and payroll practices involving foreigners.

 

Announcing this in a bourse filing on Tuesday (Oct 4), the Catalist-listed restaurant operator said the company understands the investigation relates to &ldquo certain past hiring and payroll practices&rdquo , which have since ceased.

 

&ldquo As the investigation is still ongoing, until further notice from the MOM, JFE has been suspended from applying new work passes and renewing existing work passes,&rdquo the group said.

 

To deal with the suspension, Japan Foods Holding said it would have to streamline operational work-flow at its outlets and employ more part-timers and contract staff. JFE will also work on &ldquo right-balancing&rdquo its workforce, it added.

 

But these do not mean that any of the group&rsquo s existing operating outlets will have to be shut temporarily, it stated.

 

It will, meanwhile, &ldquo cooperate fully&rdquo with MOM&rsquo s investigation, it said, adding that the Board will monitor its progress and update shareholders as and when material developments arise.

 

Takahashi Kenichi founded Japan Foods Holding in 1997, and is executive chairman and chief executive officer of the group. Brands under the company include Afuri, Ajisen Ramen and Fruit Paradise.