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Mos Food posts 1st net loss in 11 years

Jiji PressTOKYO (Jiji Press) — Mos Food Services Inc. reported Friday 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, against its profit from the previous year of ¥2,385 million.

Mos Food booked about ¥1.1 billion in compensation payments to franchise stores as the food poisoning was highly likely to have been caused by food products supplied by the headquarters.

Sales dropped 7.2 percent from the year before to ¥66,264 million, 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 ¥1.1 billion. It plans to accelerate an expansion in Asia while reducing the number of stores in Japan.Speech

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