Japan sublease divestments push Food Innovators to $395,000 net loss

The decline was partially offset by gains in its food retail business.

Food Innovators Holdings Ltd (FIH) swung to a net loss of $395,000 in the first half of financial year 2027 from a net profit of $206,000 a year earlier, as lower contributions from its restaurant leasing and subleasing business (RLSB) weighed on performance.

The period ran from March to August 2026.

Revenue decreased 5.8% to $22.5m, mainly due to lower contributions from the RLSB in Japan. Revenue from the RLSB dropped 17.4% to $8.6m following the divestment of ten mature sublease properties in the previous corresponding period.

Gross profit fell 8.5% year-on-year (YoY) to $3.4m, with gross profit margin edging down 0.5 percentage points to 15.3%.

The declines were partially offset by the food retail business, where gross profit rose 32.4% YoY to $2.4m, and revenue grew 3.2% to $13.9m.

Other income fell to $234,000 from $496,000 as the previous period included a one-off government grant of approximately $300,000 for IPO-related professional fees.

FIH also posted a share of loss of about $100,000 from its joint ventures due to initial start-up costs at Yaruki Malaysia, which opened its first restaurant during the period.

The group targets two new restaurant openings in Southeast Asia for 2026 and a yakiniku restaurant in January 2027. It currently manages 235 subleased properties in Japan and operates 34 restaurants across Singapore, Japan, and Malaysia.

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