Japanese food group Meiji Holdings saw its profits grow by over 28% in the first half of its financial year despite stagnant sales.
Meiji booked net income of JPY12.6bn (US$108.8m) for the six months to 30 September, 28.7% higher than a year earlier. Operating income grew 19.4% to JPY18.98bn.
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The company said “diligent cost-reduction efforts” and moves to improve its product mix helped its profitability.
However, net sales dipped 0.7% to JPY559.23bn. Sales from Meiji’s pharmaceutical business fell more than 4%. Sales from its food division, which accounts for 90% of revenue, was down 0.2%.
Meiji said revenue from its dairy products declined amid competition in the yoghurt sector and the impact of a declining margarine sector.
Nevertheless, revenue from its confectionery business was up thanks to its “mainstay” lines, Meiji said. Sales of “gummy products” increased “significantly”, while Meiji also reported higher chocolate sales.
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By GlobalData
