- Group sales up 7.1%, food sales rise 3.7%
- Profit lifted by one-time gains, improved margins
- Price rises to offset increased input costs
Japanese food-to-pharma group Meiji Holdings has booked higher first-quarter earnings as sales were lifted by "mild" economic recovery in its domestic market.
Group sales increased 7.1% to JPY293.2bn (US$2.36bn) in the three months to the end of March. Operating income surged 55.7% JPY17.5bn while net earnings grew 201% to JPY22.2bn, boosted by one-time gains on fixed assets and strengthened margins.
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The firm's food business was boosted by favourable weather and an improvement in economic sentiment in Japan. Meiji said it expects Japan's economic outlook to improve to rise as the year progresses due to increases in employment levels and wages.
Meiji added it focused on growing "priority businesses" via innovation. "We launched new major products as part of initiatives to achieve growth of priority businesses." The group flagged growth in fresh and fermented dairy, processed foods and nutritionals.
Net food sales increased to JPY255.7bn, versus JPY246.7bn in the prior year period. Operating profit increased to JPY14.4bn from JPY9.8bn.
The company indicated it pushed price increases through after the close of the period in March to offset increased input costs due to higher raw material and energy expenses.
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