Summary of Financial Results for the Interim Period of FY2015:
Reached Record Highs for Operating Income, Ordinary Income and
Profit Attributable to Owners of Parent
and
Revision to Full-Year Consolidated Performance Forecast for FY2015
I. Summary of Financial Results for the Interim Period of the Fiscal Year Ending March 31, 2016 (FY2015)

TOKYO, November 5, 2015 – A summary of the consolidated financial results of Ajinomoto Co., Inc. (“Ajinomoto Co.”) for the interim period of FY2015 (April 1, 2015 – September 30, 2015) is as follows.

(JPY billions unless otherwise noted; figures rounded down)
Consolidated Results Change from Previous
Interim Period (%)
Net Sales 589.8[467.6] +26.1%
Operating Income 48.0[28.5] +68.2%
Ordinary Income 50.5[31.9] +58.5%
Profit Attributable to
Owners of Parent
42.5[20.7] +104.9%
Note: Figures in brackets are the results of the previous interim period.

Net sales for the interim period ended September 30, 2015 increased JPY 122.2 billion compared with the previous interim period to JPY 589.8 billion due to factors including growth in sales of seasonings and processed foods (overseas) on a local currency basis, an increase in animal nutrition sales, and making consolidated subsidiaries of the former Windsor Quality Holdings, LP (currently Ajinomoto Windsor, Inc.; hereafter “Windsor”), a frozen food manufacturing and sales company in the United States in which Ajinomoto Co. acquired full equity interest on November 5, 2014, and of Ajinomoto General Foods, Inc. (“AGF”), shares of which Ajinomoto Co. acquired on April 23, 2015. Operating income increased JPY 19.4 billion to JPY 48.0 billion due to factors such as making AGF a consolidated subsidiary, in addition to substantial increases in income from animal nutrition and seasonings and processed foods (overseas). Ordinary income increased JPY 18.6 billion to JPY 50.5 billion. Despite recording a JPY 6.5 billion loss on liquidation of affiliated companies in connection with the sale of shares of a sweetener production and sales subsidiary in France, which was conducted as part of business structure reinforcement, Ajinomoto Co. also recorded a JPY 18.0 billion gain on step acquisitions as an extraordinary gain due to the revaluation of shares it had held before the additional acquisition of shares of AGF in April 2015 to the market price as of the time of the additional acquisition. As a result, profit attributable to owners of parent increased JPY 21.7 billion to JPY 42.5 billion.

Segment information is summarized below.

Please note that Ajinomoto Co. has changed the classification of its reportable segments as of the first quarter of FY2015. Figures below for the previous interim period have been reclassified to match the current segments.
(JPY billions unless otherwise noted; figures rounded down)
  Net
Sales
Change from
Previous
Interim Period
Change from
Previous Interim
Period (%)
Operating
Income
Change from
Previous
Interim Period
Change from
Previous Interim
Period (%)
Japan Food Products 189.6 +50.8 +36.7% 12.9 +3.4 +36.2%
International Food
Products
234.4 +61.0 +35.2% 23.2 +6.7 +41.0%
Life Support 74.4 +7.3 +10.9% 8.3 +6.2 +308.3%
Healthcare 63.8 +7.4 +13.1% 3.2 +2.5 +333.8%
Other Business 27.4 -4.4 -14.0% 0.3 +0.5
Total 589.8 +122.2 +26.1% 48.0 +19.4 +68.2%
Note: Domestic and overseas sales of ACTIVA® products to food processing companies and savory seasonings are included in Japan Food Products. Domestic and overseas sales of AJI-NO-MOTO® for the food processing industry and nucleotides and sweeteners are included in International Food Products.

Japan Food Products segment sales increased due to growth in sales of seasonings and processed foods (Japan), in addition to the impact of making AGF a consolidated subsidiary. Operating income increased due to factors including the growth in sales of seasonings and processed foods (Japan), in addition to the impact of making AGF a consolidated subsidiary.

International Food Products segment sales increased due to growth in sales of seasonings and processed foods (overseas), umami seasonings for processed food manufacturers and sweeteners, in addition to making Windsor a consolidated subsidiary. Operating income increased due to the increases in sales of seasonings and processed foods (overseas), umami seasonings for processed food manufacturers and sweeteners.

Life Support segment sales increased as animal nutrition sales grew substantially, although sales of specialty chemicals were unchanged. Operating income increased due to a substantial increase in income from animal nutrition, despite a decrease from specialty chemicals.

Healthcare segment sales increased as sales of pharmaceutical custom manufacturing and amino acids for pharmaceuticals and foods grew, although sales of pharmaceuticals decreased. Operating income increased with increases in income from pharmaceutical custom manufacturing, amino acids for pharmaceuticals and foods and pharmaceuticals.

II. Revision to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2016 (FY2015)
Based on recent trends in business performance and other factors, Ajinomoto Co. has revised its consolidated performance forecast for FY2015 (April 1, 2015 – March 31, 2016), which was announced on August 27, 2015, as follows.

1. Revision to the Consolidated Performance Forecast for FY2015 (April 1, 2015 – March 31, 2016)
(JPY billions unless otherwise noted; figures rounded down)
  Net Sales Operating
Income
Ordinary
Income
Profit
Attributable to
Owners of
Parent
Net Income
per Share
(Yen)
Previous forecast (A) 1,263.0 82.0 85.0 65.0 109.83
Revised forecast (B) 1,263.0 86.0 89.0 67.5 114.72
Amount of change (B-A) 4.0 4.0 2.5
Percentage change (%) 4.9% 4.7% 3.8%
[Reference]
Results for the fiscal year ended
March 31, 2015 (FY2014)
1,006.6 74.5 82.8 46.4 78.54

2. Reasons for the Revision
Compared with the performance forecast announced on August 27, 2015, Ajinomoto Co. has revised upward each level of income from operating income to the bottom line. The status of operating income is as follows.

The International Food Products business is expected to surpass the initial forecast due to strong sales of seasonings in Asia, as well as strong performance in the interim period by umami seasonings for processed food manufacturers due to the effect of the exchange rate for trade, among other factors.

On the other hand, the Japan Food Products business overall is expected to fall below the initial forecast. Although coffee products are expected to exceed the initial forecast with strong performance due mainly to product revisions and cost reductions, gift products in seasoning and processed foods are expected to fall short of the initial forecast due to the impact of market contraction, among other factors.

Also, in the Healthcare business, pharmaceuticals are expected to fall below the initial forecast due to expenses incurred in connection with the integration (absorption-type split) of the gastrointestinal disease treatment business of Eisai Co., Ltd. and AJINOMOTO PHARMACEUTICALS CO., LTD., which was announced on October 15, 2015.

As a result of these factors, Ajinomoto Co. expects overall operating income to exceed the initial forecast and each level of income to exceed the previous forecast.

The assumed average exchange rate for the fiscal year is JPY 120 to USD 1.

Please note that the dividend forecast announced on May 8, 2015 has not been revised.

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 26 countries and regions, Ajinomoto Co. had net sales of JPY 1,006.6 billion (USD 9.17 billion) in fiscal 2014. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

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