Maruha Nichiro Corp., the Japanese food group, has reported a 43% drop in annual earnings due to impairment losses – but booked higher operating profit and sales.

The company said yesterday (9 May) that net profit fell to JPY4.09bn (US$37.5m) in the 12 months to the end of March, down from JPY7.21bn in fiscal 2014/2015. The company had previously forecast earnings of JPY7bn. 

Maruha Nichiro’s net result was hit by a JPY3.5bn impairment loss at its subsidiary Maruha Nichiro Asset. This was need to “devalue the book value” of rental properties in Yokosuka, Kanagawa, “due to declining revenue caused by the change in operating environment”, the company said in a statement.

However, Maruha Nichiro’s operating income and sales were up year-on-year, the company stressed. Net sales rose to JPY884.8bn, up 2.4%. Operating income surged 95.4% to JPY16.97bn.

For the new financial year, Maruha Nichiro has forecast net sales of JPY890bn, operating income of JPY18bn and net income of JPY9bn.