Nutrition boost for Ajinomoto
of the main drivers of growth for Japanese monosodium glutamate
seasonings and sweeteners group Ajinomoto in the first nine months of 2003.
Total sales for the April to December period were Y795.8 billion, while operating profits reached Y54.1 billion and net profits were Y27.3 billion. No comparative figures for the previous year were given.
The figures show that the Japanese group is well on track to meet its full-year targets - sales of Y1.05 trillion and net profits of Y35 billion - and that the negative impact of factors such as BSE and avian 'flu was more than offset by gains elsewhere, not least in the nutrition sector.
Amino Vital sales were boosted by higher sales of the jelly drink in which it is a key ingredient, but there were also higher sales of amino-acid based sweeteners for home and restaurant use, helped by improvements to the Pal Sweet range of products.
Overall domestic sales reached Y466.8 billion during the nine month period, despite the impact of food scares and low consumer spending on processed food products. Domestic seasonings sales also took a knock, despite increased marketing expenditure for certain products, with some customers slowing production levels in light of weak consumer spending levels, but this was offset by gains from the enzyme business, which grew both at home and abroad.
Ajinomoto produces a wide range of products for the Japanese market, including processed foods, frozen foods, edible oils, coffee and dairy products, as well as its seasonings and sweeteners business.
Outside Japan, total sales were Y107.5 billion during the period, helped by strong seasoning sales in markets such as Thailand and Vietnam and a recovery in the Indonesian market, where MSG sales had been affected by a debate over halal status. There were also strong sales in West Africa, but increased sales in North America and Europe were offset by the impact of currency movements.
Amino acid sales outside Japan were Y113.4 billion, with a strong performance from feed-use products offset by sluggish performances from the pharmaceutical and food sectors impacted by exchange rates and logistical problems. Revenues from the sweeteners arm fell as a result of lower unit prices, despite strong volume gains.
