Net sales decreased 1.6%, or ¥19.4 billion,
year on year to ¥1,170.8 billion. By region, sales in “Japan”
decreased 3.7% to ¥812.4 billion, due to factors including ceasing
to be involved in the chilled dairy product business at the end of
January 2009, whereas sales overseas increased 3.3% to ¥358.4
billion, driven by growth in sales, despite the negative impact of
foreign exchange rates due to the appreciation of the yen. Sales in
“Asia” increased 5.8% to ¥159.7 billion, sales in “America”
decreased 1.0% to ¥105.4 billion, and sales in “Europe” increased
4.2% to ¥93.1 billion.
Cost of Sales and SG&A Expenses
In line with the decline in the cost of raw materials and fuels, the
cost of sales decreased 5.7%, or ¥47.5 billion, to ¥785.5
billion. The ratio of the cost of sales to net sales fell 2.9
percentage points to 67.1%.
Selling, general and administrative expenses rose 1.5%, or ¥4.8
billion, from the previous fiscal year to ¥321.2 billion. The main
reasons for this increase were higher personnel costs, mainly
retirement benefit expenses, and higher advertising and promotion
expenses for expanding sales mainly in Asia.
Operating Income
Operating income increased 56.8%, or ¥23.2 billion, from the
previous fiscal year to ¥64.0 billion. By region, operating income
in “Japan” increased 9.1% to ¥29.3 billion, while operating income
from operations overseas increased 61.5% to ¥42.6 billion, and
operating income from corporate and eliminations was a loss of ¥8.0
billion. The main reason for the domestic increase in operating income
was a significant increase in the domestic food products business, due
mainly to contributions from seasonings and processed foods and frozen
foods, which offset a substantial decline in the amino acids business
mainly with respect to sweeteners and a decline in the pharmaceuticals
business. Overseas, the increase in operating income was mainly
attributable to overseas seasonings. Operating income in “Asia”
increased 63.1% to ¥26.1 billion; operating income in “America”
decreased 1.9% to ¥8.4 billion; and operating income in “Europe”
increased 354.2% to ¥8.0 billion.
Other Income (Expenses)
Other income, net totaled minus ¥19.2 billion, compared to other
income, net of minus ¥37.6 billion for the previous fiscal year.
Key contributing items included exchange gains of ¥2.6 billion, an
increase of ¥2.6 billion. In the previous year, exchange losses of
¥12.4 billion, which was the result of foreign exchange losses
associated with non-deliverable forward (NDF) transactions and with the
balance of foreign currency borrowings at consolidated subsidiaries in
Brazil, were recorded. Impairment losses were ¥14.3 billion, mainly
with respect to the manufacturing facilities of amino acids business,
compared to ¥18.8 billion in the previous year. A reversal of
accrued expenses on contract alteration of ¥1.4 billion was
recorded, an increase of ¥1.4 billion. Loss on disposal of fixed
assets was ¥4.5 billion, ¥1.1 billion more than in the previous
year. Loss on voluntary recall was ¥1.0 billion, an increase of
¥1.0 billion.
Net Income
Net income for the period under review was ¥16.6 billion, compared
to a net loss of ¥10.2 billion in the previous fiscal year. Net
income per share for the year was ¥23.85, compared to a net loss
per share of ¥14.65 the year before. In the period under review,
the Company reversed ¥6.4 billion of deferred tax assets, based on
careful examination of the realizability of deferred tax assets, and
recorded as prior-period income tax an amount of ¥1.8 billion as
additional tax likely to arise as a result of a tax assessment based on
the transfer pricing tax system.
