Ⅰ. Overview of Financial Results for the Interim Period of the Fiscal Year Ending March 31, 2017 (FY2016)
TOKYO, November 8, 2016 – An overview of the consolidated financial results of Ajinomoto Co., Inc. (“Ajinomoto Co.”) for the interim period of FY2016 (April 1, 2016 – September 30, 2016) is as follows.
(JPY billions unless otherwise noted; figures rounded down)
In the interim period ended September 30, 2016, consolidated net sales decreased JPY 67.0 billion compared with the same period of the previous fiscal year to JPY 522.5 billion as a result of factors including a decline in sales of seasonings and processed foods (International) due to the negative effect of currency translation, the change in EA Pharma Co., Ltd. from a consolidated subsidiary of Ajinomoto Co. to an affiliated company accounted for by the equity method due to the restructuring of the pharmaceuticals business, and a substantial decline in sales of animal nutrition. Operating income decreased JPY 8.0 billion to JPY 39.1 billion and ordinary income decreased JPY 7.3 billion to JPY 42.4 billion due to a substantial decline in income from animal nutrition and the negative effect of currency translation, among other factors. Profit attributable to owners of parent decreased JPY 16.9 billion to JPY 25.0 billion in the absence of factors including the effect of a gain on step acquisitions of shares of Ajinomoto General Foods, Inc., which was recorded in the first quarter of the previous fiscal year.
An overview of consolidated results by business segment is as follows.
Ajinomoto Co. has changed the classification of its reportable segments as of the first quarter of FY2016. Figures below for the same period of the previous fiscal year have been reclassified to match the current segments.
(JPY billions unless otherwise noted; figures rounded down)
Japan Food Products segment sales decreased, despite growth in sales of frozen foods (Japan), as sales declined in coffee products and seasonings and processed foods (Japan) due in part to the sale of shares of a subsidiary. Operating income increased due to the growth in sales of frozen foods (Japan), among other factors.
International Food Products segment sales decreased on a yen basis as sales of seasonings and processed foods (International) and umami seasonings for processed food manufacturers and sweeteners and frozen foods (International) declined, due in part to the negative effect of currency translation. Operating income decreased due to factors including the negative effect of currency translation.
Life Support segment sales decreased due to the substantial decline in animal nutrition sales, although results for specialty chemicals were on par with the same period of the previous year. Operating income decreased due to a substantial decline in income from animal nutrition, and a decline in income from specialty chemicals.
Healthcare segment sales decreased due to a decline in sales of amino acids for pharmaceuticals and foods and pharmaceutical custom manufacturing, due in part to the negative effect of currency translation. Operating income increased due to growth in income from pharmaceutical custom manufacturing and amino acids for pharmaceuticals and foods.
Ⅱ. Revision to the Full-Year Consolidated Performance Forecast for FY2016
Based on recent trends in business performance and other factors, Ajinomoto Co. has revised its consolidated performance forecast for FY2016 (April 1, 2016 – March 31, 2017), which was announced on May 10, 2016, as follows.
1. Revision to the Consolidated Performance Forecast for FY2016
(April 1, 2016 – March 31, 2017) (JPY billions unless otherwise noted; figures rounded down)
2. Reasons for the Revision
Compared with the performance forecast announced on May 10, 2016, Ajinomoto Co. has revised net sales and each level of income from operating income to the bottom line.
The revisions of the net sales and operating income forecasts are mainly due to the negative effect of currency translation from the appreciation of the yen against major currencies and the downturn in profitability associated with the weakening market conditions in the animal nutrition business.
As a result of these factors, Ajinomoto Co. expects ordinary income and profit attributable to owners of parent to fall short of the previous forecast.
The assumed average exchange rate for the fiscal year is JPY 103.50 to USD 1.
Please note that the dividend forecast announced on May 10, 2016 has not been revised.
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 1,185.9 billion (USD 9.87 billion) in fiscal 2015. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.
For further information, please contact:
Ajinomoto Co., Inc. Public Communications Department;
pr_info@ajinomoto.com
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