31 January, 2008 - In its third quarter results, Ajinomoto announced today a 6 pct increase in consolidated net sales to 933.2 billion Yen (EUR 5.9 billion), a 6.2 pct rise in consolidated net income to 30.2 billion Yen (EUR 191.8 million) thanks mainly to strong performance in its overseas markets.
The Japanese company said that for the period 1 April-31 December, 2007, net sales in its overseas food product business were up 26.8 pct to 118 billion yen (EUR 748.7 million) while operating income had climbed 68.2 pct to 12.8 billion yen (EUR 81.2 million).
A growth in sales of seasonings for home and restaurant use was attributed as being the major drivers in the revenue and income increases. Income was also boosted by what the company called “the favourable impact of foreign exchange fluctuations.”
On the domestic front, the company’s performance was more mixed. While product sales showed a 1.9 pct or 9.1 billion Yen increase, operating income fell by almost a third to 15 billion Yen (EUR 95.2 million).
Ajinomoto said increased demand for its coffee and the 100 pct acquisition of Calpis Co in October 2007 was responsible for the sales increase. The large drop in operating income was caused by higher raw material costs, investment in its health-related business and a fall in seasoning sales for home use.
Sales of the umami seasoning AJI-NO-MOTO grew substantially in all markets, home; restaurant and the processed food sectors. Nucleotides also performed strongly.
In sweeteners, sales to the food processing industry also increased driven by volume growth. Sales of powdered juice containing aspartame rose considerably in South America.