Net sales decreased 2.1%, or ¥24.8 billion, year on year to ¥1,172.4 billion, mainly impacted by the removal of sales of Calpis Co. products from the third quarter. By region, while sales in “Japan” decreased 6.1% to ¥764.9 billion, sales overseas increased 6.6% to ¥407.5 billion. Sales increased 9.5% to ¥194.8 billion in “Asia,” 3.0% to ¥117.4 billion in “Americas” and 5.4% to ¥95.1 billion in “Europe”. Excluding the impact of sales of Calpis Co. products, net sales increased ¥1.9%, or 20.9 billion to ¥1,113.1 billion, partly due to growth in sales of seasonings and processed foods and frozen foods in “Japan”, and an increase in sales of consumer foods and feed-use amino acids overseas, which offset a decline in sales in the pharmaceuticals segment, etc. in “Japan”.


Cost of Sales and SG&A Expenses

In line with the decrease in sales, the cost of sales decreased 0.7%, or ¥5.4 billion, to ¥788.1 billion. The ratio of the cost of sales to net sales rose 0.9 percentage points to 67.2%, mainly due to the effect of NHI drug price revisions and a decline in royalty income in the pharmaceuticals business, a fall in unit prices and an increase in capital expenditures in umami seasoning for processed food manufacturers.

Selling, general and administrative expenses decreased 5.5%, or ¥18.0 billion, from the previous fiscal year to ¥313.1 billion, impacted by the removal of Calpis Co. from the scope of consolidation as of the third-quarter, despite a rebound in selling expenses from the downturn due to the earthquake in the previous period.


Costs, Expenses and Income as Percentages of Net Sales




Operating Income

Operating income decreased 1.9%, or ¥1.3 billion, from the previous fiscal year to ¥71.2 billion. By region, operating income in “Japan” decreased 3.4% to ¥34.3 billion, while operating income from operations overseas decreased 0.4% to ¥36.8 billion.

The overall decrease in operating income in “Japan” was attributable to a decline in net sales from specialty chemicals and the pharmaceuticals segment, etc., despite contributions from seasonings, processed foods, frozen foods and others, and an improvement from the previous year in amino acids for pharmaceuticals and foods. In overseas regions, operating income maintained around the same level as the previous fiscal year mainly due to contributions from amino acids for pharmaceuticals and foods, feed-use amino acids, and consumer foods. Operating income increased 2.4% to ¥22.1 billion in “Asia”, 4.5% to ¥9.2 billion in “Americas”, and decreased 16.2% to ¥5.4 billion in “Europe”.


Other Income (Expenses)

The difference between non-operating income and non-operating expenses was a positive figure of ¥5.9 billion, an increase of ¥2.6 billion compared to a positive figure of ¥3.3 billion in the previous year. The main factor in this increase was an increase in equity in earnings of non-consolidated subsidiaries and affiliates and foreign exchange gains.


Net Income

Net income for the period under review increased 15.9%, or ¥6.6 billion, to a record high of ¥48.3 billion. Net income per share for the year was ¥74.35, a record level, compared to ¥61.28 for the previous year.