Toyo Suisan 1Q Records \7.8B in Operating Profit
August 8, 2013
Toyo Suisan Kaisha, Ltd. (Tokyo-based; President Kazuo Obata) announced its first quarter results of FY March 2014. Turnover hiked 12.8 percent contrasted to the previous year, to 87.9 billion yen, and operating profit also gained 15 percent, amounting to 7.799 billion yen. Ordinary proceeds were 8.253 billion yen, up 14.6 percent and net income ended in 6.729 billion yen, up 88.1 percent.
Seafood operation reported sales in the amount of 8.149 billion yen, up 1.1 percentage points, and profit in the amount of 17 million yen, down 78.7 percent. The results were ascribable to cost increases, such as raw material prices, incurred mainly by the weaker Yen.
Overseas instant noodle business experienced favorable results in Central America and South America. Turnover was 16.7 billion yen, an increase of 22.3 points. Profit managed to soar 6.7 percent to 3.05 billion Yen, regardless of increases in raw material costs and marketing fees. This segment was also got hit by the weaker Yen.
“Maru-chan Seimen Hiyashi Chuka” Brings About Outstanding Sales Jump
Instant noodle business in Japan enjoyed positive sales in the series of Japanese style noodles represented chiefly by Akai Kitsune Udon and Midori no Tanuki Tensoba. A campaign and new flavors benefitted the sales of Men Zukuri. In the category of packaged noodles, a new product, Maru-chan Seimen Hiyashi Chuka was introduced, leading to an explosive sales increase. This segment cites sales of 28.3 billion yen, up 13.3 over the same period last year, and profit of 3.042 billion yen, up 27.2 percent.
Chilled food business saw the category of 3pk chow mein (uncooked noodles) move quite well. Uncooked noodles had a tough price war with competition; nevertheless, one of the spring/summer collection, Neapolitan Spaghetti (3pk) moved positively. Cooling taste foods also exhibited favorable sales. Irrespective of commercial frozen foods being in trouble, professional-grade frozen noodles showed steadfast sales because of an aggressive, strategic approach to the school meal sector and introducing new products designed for foodservices. Sales were 16.2 billion yen, up 2.8 points and profit registered 927 million yen, up 11 percent.
Increased revenues were reported by the processed foods segment. In the group of freeze-dry products, foods in cups and packaged foods demonstrated healthy sales. Revising wholesale prices of fish sausages backfired and ended in declined sales. In seasonings, diminishing markets of instant bullions and dried fish flakes contributed to a fall in sales. Turnover finished in a 0.9 percent increase to 4.156 billion yen, and a profit loss of 57 million yen was cited, as opposed to a loss of 6 million yen last year.
Cold warehouse operation pulled off a 4.2 percent spike in revenues, totaling 3.934 billion yen, and a 5.4 percent increase in earnings to 490 million yen, despite lackluster imported goods due to the weaker Yen.
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