Ajinomoto Posts 3% Sales Growth
In the Amino Acids business, a drop in the sales price of feed-use Lysine had a substantial impact on sales, which rose only slightly year-on-year despite the contributions of a sharp rise in sales of specialty chemical products.
15/05/06 Ajinomoto Co., Inc. has announced its consolidated results for the fiscal year ended March 31, 2006. On a consolidated basis, net sales were 1,106.8 billion yen (a 3% increase from the previous fiscal year), operating income was 60.3 billion yen (a 15% decrease), ordinary income was 61.4 billion yen (a 15% decrease) and net income was 34.9 billion yen (a 22% decrease).
In the Domestic Food Products business, sales rose slightly compared with the previous fiscal year as a result of increased sales of various types of coffee, frozen foods and other products. Despite the effect of higher prices for certain raw ingredients, operating income rose year-on-year due to progress in cost reductions. Ajinomoto’s lineup of Japanese, Western and Chinese soup stock products performed well despite a slight decline in sales of Hon-Dashi compared with the previous fiscal year, as a result of effective marketing activities for consommé and Chinese soup stocks. Sales of newly launched varieties of Knorr Cup Soup and Cook Do were solid.
In the Overseas Food Products business, sales and operating income both increased substantially compared with the previous fiscal year due to the penetration of sales price increases for umami seasoning AJI-NO-MOTO for the home and restaurant use, which were practiced in response to higher raw material costs for AJI-NO-MOTO, and growth in sales of flavor seasonings.
In the Amino Acids business, a drop in the sales price of feed-use Lysine had a substantial impact on sales, which rose only slightly year-on-year despite the contributions of a sharp rise in sales of specialty chemical products and a sales price increase for AJI-NO-MOTO for processed food manufacturers. Higher raw material prices were also a factor in the significant year-on-year decrease in operating income.
In the Pharmaceuticals business, sales and operating income both increased compared with the previous fiscal year, due to the contribution to sales of drugs for lifestyle-related diseases and other factors, although LIVACT Granules and infusions faced difficult conditions.
For the fiscal year ending March 31, 2007, Ajinomoto forecasts consolidated net sales of 1,180 billion yen, operating income of 71.5 billion yen, ordinary income of 69 billion yen and net income of 35.5 billion yen. These forecasts assume a U.S. dollar/yen exchange rate of 115 yen for the period.
Ajinomoto plans to pay cash dividends for the fiscal year ending March 31, 2007 of 15 yen per share, including an interim dividend of 7 yen per share, which will be a 1 yen per share increase from previous fiscal year.
