Scandal-hit Japanese frozen food group Katokichi Co. has plunged into the red over the last 12 months, booking an annual net loss of JPY9.8bn (US$80.2m).

The company, which has become embroiled in revelations that it has inflated sales since 2001, posted a 24.1% slump in operating profit to JPY10.1bn.

According to reports in Japan, Katokichi saw annual sales up 9.5% on the year to JPY348.6bn, growth that was not enough to arrest the fall in earnings due to fierce price competition.