August 5, 2010

Kyokuyo's sales go 11% higher on-year

Seafood supplier Kyokuyo reported first quarter contributions of purchasing marine products and tuna businesses achieved net sales of JPY37.479 billion (USD432.8 million) or an increase of 10.6% on-year.

On the other hand, operating profit plunged 48.3% to JPY374 million (USD4.3 million) and ordinary income by 39.3% to JPY472 million (USD5.5 million). These occurred as a result of a fallen profit margin in its cooked frozen food business and very poor performance by its refrigerated ocean transportation operations.

Moreover, the firm saw a loss on revaluation of investments in securities-in total JPY95 million (USD1.1 million) were registered as an extraordinary loss-leading the path to the first quarterly net income of JPY166 million (USD1.9 million), a nosedive of 53.3%.

Kyokuyo's marine products purchasing business posted net sales of JPY17.025 billion (USD196.6 million), up by some JPY2.9 billion (USD33.5 million) from the comparable period in 2009. Its operating earnings rose by JPY90 million (USD1.04 million) to JPY318 million (USD3.7 million).

The business expanded its sales channels of raw materials such as as salmon and northern fish species for domestic and overseas consumption and use. Further, enlarged markets for added value products, like crabmeat and shrimp prepared for tempura or deep-fry, played a vital role in revenue and profit growth.

Its frozen food business-including frozen seafood like sushi toppings and boneless fillets-saw sales of JPY9.737 billion (USD112.5 million) and an operating income of JPY54 million (USD623,630). Profit margin dropped due to harsh competition and cooked frozen food sales also fell.

Sales of the canned food business achieved JPY3.523 billion (USD40.7 million) and operating earnings were JPY90 million (USD1.04 million). The division made intense efforts to create new products, mainly canned marine foods and seafood appetizers manufactured by a consolidated subsidiary, Jokki, and also to widen sales channels.

The Japan-based company mainly offers marine and processed food products. It has five business segments, and its marine business segment purchases and sells marine products. The processed food segment is involved in the manufacture, purchase and sale of frozen foodstuffs, as well as the sale of canned processed foodstuffs.

The logistics service segment specialises in the operation of refrigerated warehouses and the provision of marine transportation services. The tuna fishery segment is engaged in the catching, farm-raising, processing and sale of sliced bonito and tuna while the others segment is involved in the operation of insurance agencies, among others.