Food Innovators Holdings (FIH) has reported a significant increase in its Food Retail Business (FRB) gross profit, which rose by 32.4% year-on-year to S$2.4m for the first half of 2027. This growth comes despite a 5.8% decline in overall revenue to S$22.5m, primarily due to the divestment of ten mature properties in its Restaurant Leasing and Subleasing Business (RLSB) in Japan.
The company, which operates Japanese dining concepts across Asia, is focusing on expanding its FRB across Southeast Asia. This includes acquiring Malaysia-based partner Daruma Syokudo Sdn. Bhd., expected to positively impact earnings. FIH plans to open two new restaurants by the end of 2026 and a third in January 2027 under its partnership with Yaruki.
FIH’s strategic shift aims to build a sustainable, high-margin earnings base. The company is also optimising its RLSB portfolio in Japan, seeking to generate stable recurring rental income. The acquisition of One Grip is set to enhance talent sourcing capabilities, supporting both directly operated restaurants and tenant customers.
President and CEO Kubota Yasuaki commented, “Our overall performance was impacted by lower contributions from our Restaurant Leasing and Subleasing Business following the divestment of mature properties. Nevertheless, we expect our existing portfolio to continue generating recurring rental income.”
Looking ahead, FIH is committed to expanding its halal-certified HONOLU ramen and KANBE brand, particularly in Malaysia. The company is also exploring the use of artificial intelligence to improve operational efficiency amidst rising labour costs.
