JAPAN: Ajinomoto sees income plummet

By: just-food.com | 11 August 2008

Japanese food company Ajinomoto Group has posted a 43.4% fall in operating income for the first quarter, which dropped to JPY7.9bn, as the slowing Japanese economy, higher fuel and materials costs and flat consumer spending weighed on profits.

Consolidated sales for the first quarter increased 0.9% to JPY301.4bn. Domestic food sales were up 4.5%, however costs drove segment profits down 68.5%. Overseas food sales rose 3%, due to an increase in volumes that offset the negative impact of currency exchange. However, operating income decreased 16.4%, again reflecting the global rise in prices of raw materials and fuels

Net income decreased 56.6% to JPY3.7bn, due to a "decrease in gains on sale of fixed assets and other factors", the company said.

Sectors: Baby food, Bakery, Chilled foods, Commodities & ingredients, Snacks

Companies: Ajinomoto