June 9, 2023

 

Nissui reports record revenue and strong earnings driven by aquaculture turnaround

 

Japanese seafood giant Nissui has announced impressive earnings and record-high revenue for its most recent fiscal year, attributing the gains to a remarkable turnaround in its aquaculture division, IntraFish reported.

 

Total revenue for the fiscal year ending on March 31 reached JPY 768.2 trillion (~US$5.5 billion; JPY 100 = US$0.72), marking a substantial 10.7% increase compared to the previous year and representing the highest figure in the company's century-long history.

 

Nissui's Marine Products Division experienced a 14% surge in sales, reaching JPY 3.3 billion (~US$2.4 billion) for the year, while operating profits soared by 46% to JPY 185 billion (~US$1.3 billion).

 

The success of Nissui's aquaculture division was primarily attributed to increased sales volumes of coho salmon and improved yellowtail production, contributing to a significant operating profit increase of JPY 29 billion (~US$204 million). Moreover, substantial cost reductions in the company's North American processing operations further bolstered these results.

 

Following the announcement on May 12, Nissui's shares on the Tokyo Stock Exchange saw a remarkable surge, climbing from JPY 587 (~US$4.21) to JPY 646 (~US$4.64) as of Tuesday, June 6. This figure represents the highest point in nearly two years and marks a 20% increase over the past year.

 

The company's report concluded with a note of caution, highlighting the ongoing impact of rising raw material costs and the depreciation of the yen on the company's food business performance.

 

Nissui's extensive portfolio encompasses various entities such as Dutch Harbor-based seafood processor UniSea, frozen seafood brand Gorton's, a stake in Alaska pollock harvester Glacier Fish Company, and seafood importer F W Bryce.

 

The company also holds ownership of Cite Marine, Nordic Seafood, Flatfish, and other companies in Europe and the UK. It has also invested in Chilean salmon farmer Salmones Antarctica, holds a stake in New Zealand-based Sealord, and maintains multiple divisions across Asia.

 

In line with its expansion strategy, Nissui recently made an investment in Immersion Group, an Australian land-based seaweed startup.

 

-      IntraFish