Decrease in Sales and Increase in Income for the
Fiscal Year Ended March 31, 2010
May 10, 2010 - Ajinomoto Co., Inc. (Ajinomoto; President & CEO: Masatoshi Ito; Headquarters: Tokyo, Japan) today announced its results for the fiscal year ended March 31, 2010, as outlined in the following tables. On a consolidated basis, net sales were 1,170.8 billion yen (a 2% decrease from the previous year), operating income was 64.0 billion yen (a 57% increase), ordinary income was 67.6 billion yen (a 161% increase) and net income was 16.6 billion yen.
In the domestic food products business, sales decreased slightly compared with the previous fiscal year, and operating income increased substantially as raw material prices calmed somewhat. By product, sales of HON-DASHI grew steadily, and in-store promotional activities for umami seasoning AJI-NO-MOTO on the occasion of its 100th anniversary helped secure results in line with the previous fiscal year. Sales of mayonnaise and mayonnaise-type dressings were strong with the contribution from GABAN Spice Dressing, which was launched last year, but sales of soup decreased and sales of the Cook Do line declined slightly. Sales of granulated products decreased substantially as a result of a voluntary recall of amino Vital products. In frozen foods, sales of core product Gyoza (Chinese dumplings) performed well, but overall sales decreased due to substantial fall in sales of rice products and some products for lunchboxes.
In the overseas food products business, sales and operating income both increased substantially compared with the previous fiscal year. As a result of the reclassification from the fiscal year ended March 31, 2010 of the umami seasonings for processed food manufacturers business from the amino acids segment to the overseas food products segment, sales increased 52.3 billion yen, and operating income increased 11.8 billion yen. In the seasonings business, sales of AJI-NO-MOTO and flavor seasonings for household use were strong in Asia, and sales of AJI-NO-MOTO for household use in West African countries grew significantly. Sales of AJI-NO-MOTO for processed food manufacturers increased substantially in Japan, and grew steadily overseas despite the negative impact of foreign exchange rates.
In the amino acids business, despite the contribution from electronic materials, sales and operating income decreased considerably as a result of the reclassification of the umami seasonings for processed food manufacturers business, intensifying competition and the negative impact of foreign exchange rates. In feed-use amino acids, sales of Threonine and Tryptophan increased considerably compared with the previous fiscal year due to substantial growth in sales volume, but sales of Lysine decreased with the impact of a decline in unit prices in the first half of the fiscal year. Sales of amino acid-base cosmetics Jino and insulation film for build-up printed wiring boards were strong.
In the pharmaceuticals business, overall sales decreased due to year-on-year declines in both self-distributed products and products sold through business tie-ups. With the added factor of increases in raw material costs, operating income decreased.
For the fiscal year ending March 31, 2011, Ajinomoto forecasts consolidated net sales of 1,234.0 billion yen, operating income of 57.0 billion yen, ordinary income of 55.0 billion yen and net income of 23.0 billion yen. This forecast assumes a U.S. dollar/yen exchange rate of 90.0 yen for the fiscal year.
Ajinomoto plans to pay dividends totaling 16 yen per share for the fiscal year ending March 31, 2011, (including an 8 yen interim dividend), the same amount as the previous fiscal year.
For further information, please contact:
Ajinomoto Co., Inc. Public Communication Department; email@example.com