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Summary of Interim Period Earnings and Revision of Consolidated
Performance Forecast for the Fiscal Year Ending March 31, 2010 |
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I. Summary of Earnings for the Interim Period of the Fiscal Year Ending March 31, 2010 Sales Down, Profits Up Year-on-Year ・Operating Income: 33.0 billion yen (63% increase from previous interim period) ・Net Income: 21.6 billion yen (4.8 billion yen net loss in the previous interim period) Interim dividend of 8 yen per share, full-year dividend of 16 yen per share planned November 6, 2009 - Ajinomoto Co., Inc. (Ajinomoto; President & CEO: Masatoshi Ito, Headquarters: Tokyo, Japan) today announced its consolidated financial results for the interim period of the fiscal year ending March 31, 2010, as outlined in the tables below. Compared with the previous interim period, net sales decreased 7% to 584.7 billion yen, operating income increased 63% to 33.0 billion yen and ordinary income increased 92% to 36.1 billion yen. Net income was 21.6 billion yen, compared with a net loss of 4.8 billion yen in the same period of the previous fiscal year. 
Sales of the domestic food products business were somewhat lower than in the same period a year earlier. This was due to the discontinuation of sales of chilled dairy products at the end of January 2009 and decreased domestic sales of beverages, which were partially offset by growth in sales edible oils and coffee products. Operating income increased substantially, aided by a drop in raw material prices, which had been escalating, etc. Sales of HON-DASHI were slightly higher, and sales of Chinese dashi products were strong. Sales of umami seasoning AJI-NO-MOTO were essentially unchanged. In frozen foods, despite solid growth in sales of core household-use products Gyoza (Chinese dumplings) and Yawaraka Wakadori Kara-Age (fried chicken), sales of Ebi Shumai declined slightly and overall sales of household-use products decreased. In beverages, sales of lactic acid beverages were essentially unchanged, but beverage sales declined overall, partly due to unfavorable summer weather and the termination of Ajinomoto’s tie-up in the evian business. In the overseas food products business, sales increased substantially due to the change of classification of umami seasonings for processed food manufacturers from the amino acids business, in addition to strong sales of this product category. Operating income increased substantially, partly reflecting the drop in raw material prices. The change of classification of umami seasonings for processed food manufacturers increased sales by 24.8 billion yen and operating income by 6.4 billion yen compared with the previous classification. In Asia, sales of AJI-NO-MOTO were strong, sales of flavor seasonings for household use increased substantially and sales of Birdy canned coffee and instant noodles were also strong. Sales of flavor seasonings for household use were also strong in South America, while sales of AJI-NO-MOTO for household use increased substantially in West Africa; however, sales in each of these regions were unchanged from or below the level of the previous interim period due to the effect of currency translation. In the amino acids business, sales and income decreased significantly due to factors such as increased competition, the effect of currency translation and a delayed recovery in demand, in addition to the change of classification of umami seasonings for processed food manufacturers to the overseas food products business. In feed-use amino acids, sales volume increased, but unit prices were considerably lower, and while sales of Threonine and Tryptophan increased, sales of Lysine fell sharply and overall sales were down substantially. Sales of pharmaceutical fine chemicals decreased sharply due to the termination of sales of a core product and the effect of currency translation. Sales of amino acids for pharmaceuticals and foods decreased overall, as domestic sales were essentially unchanged but overseas sales were impacted by currency translation. In the pharmaceuticals business, sales of self-distributed products increased slightly, but sales of products sold through business tie-ups declined, resulting in an overall decrease in sales and income. In self-distributed products, sales of LIVACT, a branched-chain amino acid formula for treatment of liver cirrhosis, and ELENTAL, an elemental diet, were firm. In products sold through business tie-ups, sales of FASTIC, a non-insulin-dependent diabetes treatment, were below the level of the previous interim period. II. Revisions to Consolidated Forecast for the Fiscal Year Ending March 31, 2010 In view of recent performance trends and other factors, Ajinomoto has revised its performance forecast for the fiscal year ending March 31, 2010, as outlined in the table below. The revised forecast replaces the forecast announced on May 14, 2009. 1. Revisions to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2010 (April 1, 2009 - March 31, 2010) 
2. Reasons for the Revision In the overseas food products business, in the seasonings category, sales of AJI-NO-MOTO for the household and restaurant markets and flavor seasonings for household use have been strong in Asia. In the umami seasonings for processed food manufacturers category, sales of AJI-NO-MOTO and nucleotides for the food processing industry have also been brisk. In addition, raw material prices, which had been rising until the second quarter, have receded. As a result, Ajinomoto projects that operating income of the overseas food products business will exceed the previous forecast. In the pharmaceuticals business, Ajinomoto projects that operating income will be higher than the previous forecast owing to factors including acquisition of the patents and trademarks for risedronate. On the other hand, operating income in the amino acids business is projected to fall short of the previous forecast due to weak unit prices for feed-use amino acids. Ordinary income is projected to be higher than the previous forecast due to the effects of exchange rate and lower interest rates. As a result of these factors, despite lower sales reflecting the effect of currency translation, Ajinomoto projects that overall consolidated operating income and ordinary income for the fiscal year ending March 31, 2010 will be higher than the previous forecast. This forecast assumes an exchange rate of 92.70 yen to 1 U.S. dollar. There is no change to the dividend forecast announced on May 14, 2009.
For further information, please contact: Ajinomoto Co., Inc. Public Communications Department; Tel: +81-3- 5250-8180 |
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