Tokyo / JP. (aci) A summary of the consolidated financial results of Ajinomoto Company Incorporated for the interim period of FY-2015 (April 01, 2015 to September 30, 2015) is as follows (Figures are rounded down):
|Net Sales||589.8 billion JPY||467.6 billion JPY||+26.1 %|
|Operating Income||48.0 billion JPY||28.5 billion JPY||+68.2 %|
|Ordinary Income||50.5 billion JPY||31.9 billion JPY||+58.5 %|
|Profit Attributable to Owners of Parent||42.5 billion JPY||20.7 billion JPY||+104.9 %|
Net sales for the interim period ended September 30, 2015 increased 122.2 billion JPY compared with the previous interim period to 589.8 billion JPY due to factors including growth in sales of seasonings and processed foods (overseas) on a local currency basis, an increase in animal nutrition sales, and making consolidated subsidiaries of the former Windsor Quality Holdings, LP (currently Ajinomoto Windsor Inc.; hereafter «Windsor»), a frozen food manufacturing and sales company in the United States in which Ajinomoto Company acquired full equity interest on November 5, 2014, and of Ajinomoto General Foods Inc. (AGF), shares of which Ajinomoto Company acquired on April 23, 2015. Operating income increased 19.4 billion JPY to 48.0 billion JPY due to factors such as making AGF a consolidated subsidiary, in addition to substantial increases in income from animal nutrition and seasonings and processed foods (overseas). Ordinary income increased 18.6 billion JPY to 50.5 billion JPY. Despite recording a 6.5 billion JPY loss on liquidation of affiliated companies in connection with the sale of shares of a sweetener production and sales subsidiary in France, which was conducted as part of business structure reinforcement, Ajinomoto Company also recorded a 18.0 billion JPY gain on step acquisitions as an extraordinary gain due to the revaluation of shares it had held before the additional acquisition of shares of AGF in April 2015 to the market price as of the time of the additional acquisition. As a result, profit attributable to owners of parent increased 21.7 billion JPY to 42.5 billion JPY.
Please note that Ajinomoto Company has changed the classification of its reportable segments as of the first quarter of FY-2015. Figures below for the previous interim period have been reclassified to match the current segments (billions JPY unless otherwise noted; figures rounded down):
|Net Sales||Change from Previous Interim Period||Change from Previous Interim Period ( %)||Operating Income||Change from Previous Interim Period||Change from Previous Interim Period ( %)|
|Japan Food Products||189.6||+50.8||+36.7 %||12.9||+3.4||+36.2 %|
|International Food Products||234.4||+61.0||+35.2 %||23.2||+6.7||+41.0 %|
|Life Support||74.4||+7.3||+10.9 %||8.3||+6.2||+308.3 %|
|Healthcare||63.8||+7.4||+13.1 %||3.2||+2.5||+333.8 %|
|Other Business||27.4||-4.4||-14.0 %||0.3||+0.5||—|
|Total||589.8||+122.2||+26.1 %||48.0||+19.4||+68.2 %|
|Note:||Domestic and overseas sales of Activa® products to food processing companies and savory seasonings are included in Japan Food Products. Domestic and overseas sales of Aji-no-moto® for the food processing industry and nucleotides and sweeteners are included in International Food Products.|
Japan Food Products segment sales increased due to growth in sales of seasonings and processed foods (Japan), in addition to the impact of making AGF a consolidated subsidiary. Operating income increased due to factors including the growth in sales of seasonings and processed foods (Japan), in addition to the impact of making AGF a consolidated subsidiary.
International Food Products segment sales increased due to growth in sales of seasonings and processed foods (overseas), umami seasonings for processed food manufacturers and sweeteners, in addition to making Windsor a consolidated subsidiary. Operating income increased due to the increases in sales of seasonings and processed foods (overseas), umami seasonings for processed food manufacturers and sweeteners.
Life Support segment sales increased as animal nutrition sales grew substantially, although sales of specialty chemicals were unchanged. Operating income increased due to a substantial increase in income from animal nutrition, despite a decrease from specialty chemicals.
Healthcare segment sales increased as sales of pharmaceutical custom manufacturing and amino acids for pharmaceuticals and foods grew, although sales of pharmaceuticals decreased. Operating income increased with increases in income from pharmaceutical custom manufacturing, amino acids for pharmaceuticals and foods and pharmaceuticals.
Revision to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2016 (FY-2015)
Based on recent trends in business performance and other factors, Ajinomoto Company has revised its consolidated performance forecast for FY-2015 (April 01, 2015 to March 31, 2016), which was announced on August 27, 2015, as follows.
1. Revision to the Consolidated Performance Forecast for FY2015 (April 01, 2015 to March 31, 2016) (JPY billions unless otherwise noted; figures rounded down)
|Net Sales||Operating Income||Ordinary Income||Profit Attributableto Owners of Parent||Net Income per Share (Yen)|
|Previous forecast (A)||1’263.0||82.0||85.0||65.0||109.83|
|Revised forecast (B)||1’263.0||86.0||89.0||67.5||114.72|
|Amount of change (B-A)||–||4.0||4.0||2.5||–|
|Percentage change ( %)||–||4.9 %||4.7 %||3.8 %||–|
|[Reference] Results for FY2014||1’006.6||74.5||82.8||46.4||78.54|
2. Reasons for the Revision
Compared with the performance forecast announced on August 27, 2015, Ajinomoto Company has revised upward each level of income from operating income to the bottom line. The status of operating income is as follows.
The International Food Products business is expected to surpass the initial forecast due to strong sales of seasonings in Asia, as well as strong performance in the interim period by umami seasonings for processed food manufacturers due to the effect of the exchange rate for trade, among other factors.
On the other hand, the Japan Food Products business overall is expected to fall below the initial forecast. Although coffee products are expected to exceed the initial forecast with strong performance due mainly to product revisions and cost reductions, gift products in seasoning and processed foods are expected to fall short of the initial forecast due to the impact of market contraction, among other factors.
Also, in the Healthcare business, pharmaceuticals are expected to fall below the initial forecast due to expenses incurred in connection with the integration (absorption-type split) of the gastrointestinal disease treatment business of Eisai Company Limited and Ajinomoto Pharmaceuticals Company Limited, which was announced on October 15, 2015.
As a result of these factors, Ajinomoto Company expects overall operating income to exceed the initial forecast and each level of income to exceed the previous forecast.
The assumed average exchange rate for the fiscal year is 120 JPY to one USD.
Please note that the dividend forecast announced on May 08, 2015 has not been revised.
|Note: The performance forecast above is based on information available to Ajinomoto Company as of the date of this news release. Various factors could cause actual results to differ materially from the above forecast.|
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 (Image: pixabay.com).