November 9, 2007- Ajinomoto Co., Inc. today announced its results for the interim period ended September 30, 2007, as outlined in the following tables. On a consolidated basis, net sales were 609.6 billion yen (a 6% increase from the same period of the previous year), operating income was 28.5 billion yen (a 3% increase), ordinary income was 27.4 billion yen (a 1% increase) and net income was 13.9 billion yen (a 3% increase).
In the Domestic Food Products business, sales increased slightly compared with the same period of the previous fiscal year, however, operating income decreased due to factors including higher raw material costs and proactive investments in the health and nutrition business. Sales of HON-DASHI fell substantially compared with the same period of the previous fiscal year due to distributors’ inventory adjustments in connection with the brand’s first full renewal in 37 years. In addition, soup sales declined compared with the same period of the previous fiscal year because of a market contraction due to record late-summer heat. With stable sales of core product types, Cook Do sales increased slightly over the same period of the previous fiscal year, while sales of mayonnaise and mayonnaise-type dressings performed well. Sales of coffee products and beverages increased, with substantial growth in sales of CALPIS WATER as well as the contribution of Blendy Aromatic Black and THE PREMIUM CALPIS.
In the Overseas Food Products business, sales and income increased substantially with significant growth of flavor seasonings in Asia and South America, and a favorable effect from currency exchange. Sales of umami seasoning AJI-NO-MOTO increased substantially in Asia and West Africa, and Asian sales of instant noodles and Birdy canned coffee significantly exceeded the same period of the previous fiscal year.
In the Amino Acids business, sales and income increased. Sales of feed-use Lysine increased substantially in every region. In South America, sales of Refresco MID, a powdered juice mixes containing aspartame, increased substantially compared with the same period of the previous fiscal year. The amino acid-based cosmetics Jino grew steadily, while sales of insulation film for build-up printed wiring board in computer were maintained at the same level as in the previous interim period despite the impact of inventory adjustments in the market.
In the Pharmaceuticals business, sales and income increased. Among products the Ajinomoto Group markets itself, sales of infusions decreased, however, sales of medical foods, LIVACT, a branched-chain amino acids formula for the treatment of liver cirrhosis, and ELENTAL, an elemental diet increased. Among products marketed through alliances, sales of osteoporosis treatment ACTONEL significantly exceeded the same period of the previous fiscal year.
For the fiscal year ending March 31, 2008, Ajinomoto forecasts consolidated net sales of 1,225.0 billion yen, operating income of 75.0-77.5 billion yen, ordinary income of 70.0-72.5 billion yen and net income of 33.5-35.0 billion yen. This forecast assumes a U.S. dollar/yen exchange rate of 117 yen.
Ajinomoto plans to pay a year-end dividend of 8 yen per share, an increase of 1 yen per share from the previous fiscal year. Together with the interim dividend of 8 yen per share, total dividends for the full fiscal year are scheduled to amount to 16 yen per share.