Japanese seasoning company Ajinomoto Co. today (2 February) predicted a full-year loss after it revealed that it swung into a net loss for the nine-month period ended 31 December.
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Ajinomoto posted a net loss of JPY4.31bn (US$48.2m) for the first nine months of its fiscal year, down from profits of JPY30.26bn seen in the comparable period of last year.
Group sales were down 1% year-on-year, dropping to JPY924.21bn from JPY933.22bn, while operating profit fell 37% to JPY33.71bn.
The company said that its results were hampered by the strength of the yen – which lowered overseas sales after currency translation. Ajinomoto also said demand has dropped at its amino acid business due to the global economic downturn.
It also reported an exceptional loss of JPY13.4bn due to amortization of Amoy Food. Ajinomoto bought Amoy Food in 2006 in order to strengthen its operations in China and other fast-growing Asian markets.
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By GlobalDataFor the fiscal year ending in March, the company now forecast a net loss of JPY9bn-13bn. Previously, the group had predicted full-year profits of JPY5bn.
