Mos Food Posts 1st Net Loss in 11 Years
Tokyo, May 10 (Jiji Press)--Mos Food Services Inc. <8153> Friday reported its first consolidated net loss in 11 years for the year ended in March, as a food poisoning scandal in August 2018 put pressure on the Japanese hamburger chain's bottom line.
The company posted a net loss of 907 million yen against the year-before profit of 2,385 million yen.
Mos Food booked about 1.1 billion yen in compensation payments to franchise stores as the food poisoning was highly likely to have been caused by foodstuffs supplied by the headquarters.
Sales dropped 7.2 pct from the year before to 66,264 million yen, reflecting customer defections in response to the scandal.
For the current year to March 2020, Mos Food expects to swing back to a net profit of one billion yen. It plans to accelerate an expansion in Asia while reducing the number of stores in Japan.
[Copyright The Jiji Press, Ltd.]