JAPAN: Fujiya expects losses as assets sold
Disgraced Japanese confectioner Fujiya said today (13 March) that it anticipates a group net loss of JPY6.7bn (US$57.1m) in the current financial year, which will end on 31 March, after the company was rocked by a scandal concerning the use of out-of-date ingredients in the production of confectionery. The group had previously forecast profits of JPY800m.
Fujiya said the revision was the consequence of a sharp fall in sales following the expired ingredients scandal. The revised earnings projection also includes a pre-tax loss of JPY7.2bn on sales of JPY63.3bn, down from a profit of JPY1bn on sales of JPY85bn foreseen in November.
The company separately announced that it will record an extraordinary profit of JPY12.5bn on the sale of its head office to a real estate investment fund, affiliated with Citigroup, for JPY13.55bn. The sale is expected to be completed at the end of March.
However, this is not enough to offset scandal-related expenses, the group warned, adding that it will forgo its dividend payment for the current fiscal year.
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