November 14, 2003

Ajinomoto's 5.4% Sales Increase in 1st Half 2003 Helps by Strong Sales of Amino Acid for Animal Feed

It is reported on Friday, November 14 that major processed food maker Ajinomoto Co. said its April-September sales expanded 5.4% from a year before to 516,144 million yen, backed by sales increases in its amino-acid and pharmaceutical operations.

For the first six months through September, the amino acid division posted sales of 72.2 billion yen, up 16.2% from a year before, due in part to strong sales of amino acid for animal feed.

Sales at the pharmaceutical division jumped 34.2% to 39.5 billion yen, following the acquisition of a pharmaceuticals maker in December last year.

Ajinomoto's mainstay food division enjoyed sales of 303.1 billion yen, increased by 1.9%.

Recurring profit rose 7.3% to 28,849 million yen. Group net profit increased 1.8% to 12,235 million yen, despite much smaller profits from selling securities than the same period of the previous year.

For the year to next March, Ajinomoto maintained its earlier earnings estimates, projecting a group net profit of 35 billion yen, up 5.5% from the previous year, and sales of 1.05 trillion yen, up 6.3%.

Meanwhile, demand from restaurants is expected to fall amid Japan's slack consumer spending. However, the decrease will be offset by rising prices for amino acid for animal feed amidst expectations that consumption of pork and chicken will increase.