Kikkoman has upped its forecasts for annual sales and earnings after growth in its first half.
The Japan-based group booked a 13% increase in revenue for the six months to the end of September, which contributed to a more than 20% rise in operating and net profit.
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In a presentation on the results, Kikkoman said the first-half revenue from its overseas soy sauce, overseas wholesale and Japan businesses – excluding the impact from exchange rates – was “generally in line with expectations”.
The group said profits “exceeded expectations” but said the performance was partly due to “a timing shift” in advertising expenses, as well as “a temporary profit-boosting factor” at its North American wholesale business.
Kikkoman added the improved profits came despite higher input costs, including those linked to the geopolitical situation in the Middle East.
The company posted first-half revenue of Y405.49bn ($2.55bn), up 13.1% on a year earlier. Operating profit grew 24.1% to Y49.18bn. Profit attributable to owners of the parent rose 22.1% to Y38.25bn.
For the 12 months to the end of March, Kikkoman is forecasting revenue of Y816.4bn, which would amount to a 9.5% increase on the year before.
It is projecting a 4.8% rise in operating profit to Y79.6bn, although it, so far, still sees profit attributable to owners of the parent dipping 0.5% to Y61.3bn.
Kikkoman’s previous forecasts for revenue and operating profit were Y799.1bn and Y78.8bn.
