Rising raw material costs pushed Ajinomoto’s profits down for the six months ended 30 September.

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The Japanese food company posted a net loss of JPY4.8bn (US$4.8m), down from JPY28.5bn in the previous year.


Despite efforts to “extensively” reduce costs and strengthen the business structure, Ajinomoto recorded a drop of 29.1% in operating income (JPY8.2bn) to JPY20.2bn.


The company recorded an extraordinary loss impairment of JPY13.4bn on the goodwill of consolidated subsidiary Amoy Food Group.


However, consolidated sales for the first half increased 2.8% (JPY16.8bn) to JPY626.4bn.

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Ajinomoto said its net income forecast for the fiscal year ending 31 March 2009 was a 82.3% increase to JPN5bn.

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