Maruha Nichiro expects higher annual sales and profits

Maruha Nichiro expects higher annual sales and profits

Maruha Nichiro, the Japan-based frozen food and seafood business, has posted an increase in first-quarter profits despite a dip in sales.

The company booked a net profit of JPY4.44bn (US$43.4m) for the three-month period to the end of June 2016, more than double the JPY2.18bn generated in the first quarter of the 2015/2016 financial year. Operating income stood at JPY7.24bn, versus JPY2.75bn last year.

Maruha Nichiro's net sales fell 1.3% to JPY212.55bn, hit by declines in the company's marine products wholesaling unit, the meat trading arm, the group's overseas division and from its business in North America, which has its own distinct unit.

For the full year, which runs until the end of March 2017, Maruha Nichiro is forecasting net sales of JPY890bn, which would be up 0.6% on the year before. It is estimating operating income will grow 6.1% to JPY18bn and a more than doubling in net income to JPY9bn.