NH Foods lowered sales target

NH Foods lowered sales target

NH Foods, the Japan-based meat, dairy and seafood group, has trimmed its forecast for annual sales after posting lower first-quarter sales and earnings.

The company now sees its net sales for the year to the end of March reaching JPY1.25trn, down from an earlier forecast of JPY1.27trn.

NH Foods booked a 3.6% fall in sales to JPY294.57bn for the three months to the end of June. The company said sales from its processed meats division and affiliated business - which houses dairy and seafood - rose year-on-year. Sales in NH Foods' meat division were down.

The company saw sales from its international division drop over 15%, leading to an operating loss from the unit of JPY809m. A year earlier, the division made an operating profit of JPY2.61bn.

The group saw its net income slide 31.2% to JPY5.92bn. Operating income reached JPY9.47bn, versus JPY11.88bn a year ago.

NH Foods maintained its forecasts for annual operating income of JPY49bn and net income of JPY31bn.

In the 12 months to the end of March 2016, NH Foods generated net sales of JPY1.24trn (US$11.49bn), up 2.3% on the previous year.

NH Foods' net income dropped 29.9% to JPY21.78bn, with the group pointing to impairment charges. The company booked a 4.3% fall in operating income to JPY46.34bn.