Japan’s Yamazaki Baking Co has posted net losses on both a parent and a group basis for the year ending 31 December.

Compared with the group net profit of ¥8.1bn posted in 1999, consolidated net loss of ¥44.2bn and parent loss of ¥32.3bn were blamed on the costs incurred through a recall of mouldy bread during last summer, which also entailed increased cleaning costs at the production plants.

The company also noted that an extraordinary charge of ¥76.1bn was necessary to cover shortfalls in retirement and pension programs.

Falling bread sales also played some part in the results, falling 4% on a parent only basis due to lower wholesale prices and the effects of the recall. Group sales of ¥729bn represented a drop of nearly 1%.

Over the course of 2001, Yamazaki revealed that it expects to record a 2% increase in sales to ¥748bn, and group net profit of ¥8bn. It the first time since the company  went public in 1962 that it has reported a loss.