Tokyo / JP. (aci) A summary of the consolidated financial results of Ajinomoto Company Incorporated for the fiscal year ended March 31, 2015 is as follows.
|.||Net Sales||Operating Income||Ordinary Income||Net Income|
|Fiscal Year Ended 2015-03-31||1’006.6 billion JPY||74.5 billion JPY||82.8 billion JPY||46.4 billion JPY|
|Fiscal Year Ended 2014-03-31||951.3 billion JPY||61.8 billion JPY||68.8 billion JPY||42.1 billion JPY|
|Year-on-Year Change||+5.8 percent||+20.6 percent||+20.4 percent||+10.3 percent|
Net sales for the fiscal year ended March 31, 2015 increased 55.2 billion JPY compared with the previous fiscal year to 1’006.6 billion JPY. Despite the impact of the absence of sales of the infusion and dialysis business units, which were spun off as AY Pharmaceuticals Company Limited, an equity-method affiliate, as of July 01, 2013, net sales increased contributed by factors such as the positive effect of currency translation, sales increase of consumer foods in overseas food products on a local currency basis and consolidation of Windsor Quality Holdings, LP (currently Ajinomoto Windsor Inc.), a frozen food manufacturing and sales company in the United States in which Ajinomoto Company acquired a full equity interest on November 05, 2014. Operating income increased 12.7 billion JPY to 74.5 billion JPY due to a substantial increase in income from feed-use amino acids and consumer foods in overseas food products, and ordinary income increased 14.0 billion JPY to 82.8 billion JPY. Net income increased 4.3 billion JPY to 46.4 billion JPY, and net income per share was 78.54 JPY (68.67 JPY in the previous fiscal year).
Dividends for the fiscal year ended March 31, 2015 are scheduled to be 24 JPY per share (including an interim dividend of ten JPY per share) and dividends for the fiscal year ending March 31, 2016 are scheduled to be 26 JPY per share (including an interim dividend of 13 JPY per share).
Overview of consolidated results by business segment
In the domestic food products segment, sales increased 21.8 billion JPY compared with the previous fiscal year due to substantial growth in sales of frozen foods because Windsor became a consolidated subsidiary, among other factors, although sales of seasonings and processed foods were unchanged from the previous fiscal year due to factors including the pullback from the last-minute surge in demand before the consumption tax rate increase. Operating income decreased 3.2 billion JPY due to expenses incurred related to the acquisition of Windsor, among other factors.
In the overseas food products segment, sales increased 34.4 billion JPY compared with the previous fiscal year, with growth in sales of consumer foods on a local currency basis in addition to the positive effect of currency translation. Operating income increased 9.1 billion JPY due to the increase in sales of consumer foods and the contribution of umami seasonings for processed food manufacturers, as well as the positive effect of currency translation.
In the bioscience products and fine chemicals segment, sales increased 11.4 billion JPY compared with the previous fiscal year, with growth in sales of feed-use amino acids, amino acids for pharmaceuticals and foods, sweeteners and pharmaceutical custom manufacturing, which develops and manufactures pharmaceutical fine chemicals and active pharmaceutical ingredients on consignment, as well as the positive effect of currency translation. Operating income increased 10.6 billion JPY, with substantial increases from feed-use amino acids, amino acids for pharmaceuticals and foods, and pharmaceutical custom manufacturing, as well as increases from specialty chemicals and sweeteners and the positive effect of currency translation.
In the pharmaceuticals segment, sales decreased 11.5 billion JPY compared with the previous fiscal year, with the absence of sales of the infusion and dialysis business units, which were spun off as AY Pharmaceuticals, and the impact of National Health Insurance (NHI) drug price revisions and generic drugs, despite an increase in royalty income. Operating income decreased 1.6 billion JPY.
Change in Segment Classifications
Until the fiscal year ended March 31, 2015, the classification of the reportable segments of the Ajinomoto Group has been Domestic Food Products, Overseas Food Products, Bioscience Products and Fine Chemicals, and Pharmaceuticals. From the fiscal year ending March 31, 2016, the segments have been changed to Japan Food, International Food, Life Support and Healthcare in accordance with a new organizational structure in line with the new business domains set forth in the FY 2014 to 2016 Medium-Term Management Plan.
As for the main changes, Bioscience Products and Fine Chemicals has been divided into Life Support and Healthcare; Pharmaceuticals is included in Healthcare; frozen foods, which had been included in Domestic Food Products, has been divided and included in Japan Food and International Food; sweeteners, which had been included in Bioscience Products and Fine Chemicals, is included in International Food; coffee product business that had been included in Other Businesses is included in Japan Food; and the wellness business is included in Healthcare.
About Ajinomoto Company
Ajinomoto Company is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto Company has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 26 countries and regions, Ajinomoto Company had net sales of 1’006.6 billion JPY (9.17 billion USD) in fiscal 2014.