Summary of Financial Statements (Consolidated)
For the Year Ended March 31, 2014
Net Sales JPY 991.3 Billion, Operating Income JPY 62.5 Billion
Generally Achieved Profit Levels of Forecast Announced on February 14

Summary of Financial Statements (Consolidated) for the Year Ended March 31, 2014
TOKYO, May 8, 2014 - For the fiscal year ended March 31, 2014, net sales were JPY 991.3 billion (up JPY 6.3 billion) and operating income was JPY 62.5 billion (down JPY 8.6 billion), generally in line with the full-year forecast announced on February 14, 2014 in the release “Revisions to Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2014.”

Net sales increased JPY 6.3 billion compared with the previous fiscal year, with growth in sales of domestic seasonings and processed foods, frozen foods, specialty chemicals, amino acids and overseas consumer foods, as well as the positive effect of currency translation. Excluding the impact from the sale of Calpis Co., Ltd. (Calpis) and the spin-off of the infusion and dialysis business units, net sales would have increased JPY 80.3 billion. Operating income decreased due to factors including a decrease in income from feed-use amino acids and the absence of sales of Calpis products, which had been recorded until the previous fiscal year. Ordinary income decreased JPY 7.6 billion to JPY 69.5 billion (down 9.9%). Net income decreased JPY 5.5 billion to JPY 42.7 billion (down 11.5%) due to factors including posting a gain on transfer of benefit obligation relating to employees’ pension fund in the previous fiscal year, and net income per share was JPY 69.70 (JPY 74.35 in the previous fiscal year).

Consolidated earnings of Ajinomoto Co., Inc. (Ajinomoto Co.) for the fiscal year ended March 31, 2014 were as follows.

(JPY billions unless otherwise noted; figures rounded down)

Net Sales Operating Income Ordinary Income Net Income
Fiscal Year Ended
March 31, 2014
991.3 62.5 69.5 42.7
Fiscal Year Ended
March 31, 2013
984.9 71.2 77.1 48.3
Year-on-Year Change +0.6% -12.2% -9.9% -11.5%

Notes:
1.Amounts for the previous fiscal year have been restated to reflect the change in accounting policy for the recording of sales for sole agent sales transactions.
2.Excluding the effect of Calpis products and the infusion and dialysis business units, net sales for the fiscal year ended March 31, 2013 would have been JPY 911.0 billion.
3.Year-on-year change based on net sales in note 2 above is +8.8%.

Dividends for the fiscal year ended March 31, 2014 are scheduled to be JPY 20 per share (including an interim dividend of JPY 10 per share) and dividends for the fiscal year ending March 31, 2015 are scheduled to be JPY 20 per share (including an interim dividend of JPY 10 per share).


Consolidated Segment Information
(JPY billions unless otherwise noted; figures rounded down)

Net Sales Year-on-Year
Change
Year-on-Year
Change (%)
Operating
Income (Loss)
Year-on-Year
Change
Year-on-Year
Change (%)
Domestic Food Products 337.5 -54.0 -13.8% 27.4 -5.2 -16.0%
Overseas Food Products 293.2 +47.8 +19.5% 25.2 +4.5 +21.9%
Bioscience Products & Fine Chemicals 228.5 +24.3 +11.9% 6.5 -7.8 -54.6%
Pharmaceuticals 51.2 -20.2 -28.3% 3.8 +0.6 +20.3%
Other Business 80.8 +8.4 +11.7% (0.4) -0.8
Total 991.3 +6.3 +0.6% 62.5 -8.6 -12.2%


In the domestic food products segment, sales decreased JPY 54.0 billion compared with the previous fiscal year to JPY 337.5 billion and segment income decreased JPY 5.2 billion to JPY 27.4 billion. Excluding the effect of Calpis products, sales would have increased JPY 5.3 billion and operating income would have decreased JPY 0.4 billion, due in part to factors including a surge in raw material prices. Sales of seasonings and processed foods decreased due to the substantial year-on-year decline in sales of gift products, despite expansion of sales of HON-DASHI®, for which Ajinomoto Co. conducted sales promotion activities linked to television commercials, and Cook Do® Chinese menu seasonings, and a significant increase in sales of Nabe Cube® hot pot seasoning.

In the overseas food products segment, sales increased JPY 47.8 billion compared with the previous fiscal year to JPY 293.2 billion (up 19.5%), with an increase in sales of consumer foods on a local currency basis in addition to the positive effect of currency translation. Operating income increased JPY 4.5 billion to JPY 25.2 billion (up 21.9%) due to the positive effect of currency translation, the increase in sales of consumer foods and other factors, despite the impact of factors such as a decline in selling prices of umami seasonings for processed food manufacturers.

In the bioscience products and fine chemicals segment, sales increased JPY 24.3 billion compared with the previous fiscal year to JPY 228.5 billion due to the positive effect of currency translation, the addition of sales of Ajinomoto Althea, Inc., which became a consolidated subsidiary from the first quarter, and growth in sales of amino acids for pharmaceuticals and foods and specialty chemicals. Operating income decreased substantially due to the impact of a drop in selling prices for feed-use amino acids.

In the pharmaceuticals segment, sales decreased JPY 20.2 billion compared with the previous fiscal year to JPY 51.2 billion due to factors including the spin-off of the infusion and dialysis business units as AY PHARMACEUTICALS Co., Ltd., an equity-method affiliate, from the second quarter, which resulted in the absence of sales of those business units. Operating income increased JPY 0.6 billion to JPY 3.8 billion, despite the decrease in sales, as a result of the strengthened business structure following the spin-off of the infusion and dialysis business units as AY PHARMACEUTICALS and other factors.


Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2015

(JPY billions unless otherwise noted)

Net Sales Operating Income Ordinary Income Net Income
Fiscal Year Ending
March 31, 2015
1,008.0 70.0 75.0 44.0
Fiscal Year Ended
March 31, 2014
991.3 62.5 69.5 42.7
Year-on-Year Change +1.7% +11.9% +7.8% +2.8%

Notes:
1.For the fiscal year ending March 31, 2015, sales promotion discounts are deducted from net sales under a new accounting method. Net sales for the fiscal year ended March 31, 2014 are presented using the previous method, under which sales promotion discounts are recorded in selling, general and administrative expenses.
2.Net sales for the fiscal year ended March 31, 2014 if presented using the new accounting method, under which sales promotion discounts are deducted from net sales, would have been JPY 952 billion (unaudited).
3.Year-on-year change based on net sales in note 2 above is +5.9%.

Sales promotion discounts paid to customers to expand sales were formerly recorded as sales commissions in selling, general and administrative expenses. From the fiscal year ending March 31, 2015, Ajinomoto Co. plans to change to a method under which such discounts are deducted from net sales. As a result, net sales are forecast to increase 1.7% compared with the previous fiscal year to JPY 1,008.0 billion.

This forecast assumes an exchange rate of JPY 100.0 to USD 1 for the fiscal year.

Note:The performance forecast above is based on information available to Ajinomoto Co. as of the date of this news release. Various factors could cause actual results to differ materially from the above forecast.




About Ajinomoto Co.
Ajinomoto Co. is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto Co. has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 27 countries and regions, Ajinomoto Co. had net sales of JPY 991.3 billion (USD 11.0 billion) in fiscal 2013. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

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