Yamazaki Baking: Profit rose 20 percent in 2007

Tokyo / JP. (yb) Yamazaki Baking Co. Limited group operating profit likely grew 20 percent to about 20,5 billion JPY (130,03 million EUR) for the year ended December 31, exceeding 20 billion JPY for the first time in three years. Sales are believed to have inched up three percent to 770 billion JPY 4,884 billion EUR), topping the initial projection by roughly four billion JPY . The 2006 acquisition of snack food maker Tohato Inc. was seen adding ten billion JPY to Yamazaki Baking´s group sales. Strong sales of pastry products were another reason for the company´s growth. Because the price of wheat did not begin rising strongly until around November, the increase in materials costs appears to have come within the expected range of between 1,6 billion and 1,7 billion JPY . With sharp climbs in materials prices expected this year, cost-cutting and price hikes will likely hold the key to Yamazaki Baking´s earnings in the current fiscal year (source).