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Maruha Nichiro's 1Q Results: Buoyant Seafood Business Doubles Profits

August 3, 2010

The reported quarterly financial statement of Maruha Nichiro Holdings indicated contributive performance exhibited by the Fisheries and Aquaculture Unit, the North America Operation Unit, as well as the Marine Products Tradings Unit. Its consolidated net sales rose 1.4 percentage points to \203.7 billion in comparison with the previous year. With the benefit of cost-cutting efforts, operating profit ended in \4.897 billion, up 138.8 per cent; ordinary earnings \4.655 billion, up 123.8 per cent; and net income \3.168 billion, up 67.8 per cent, a marked profit increase. There are no revisions to the projections of the current fiscal year performance.

Fishery Operations posted sales of \129.1 billion, a rise of \3.9 percent, and operating proceeds of \2.099 billion, showing a tremendous resurgence from a loss of \500 million in the year-ago period.

The Fisheries and Aquaculture Unit, despite stifled production due to scanty fishing, racked up growth in both revenues and profits; the feats attributable to buoyed shipments of tuna and amberjack (kampachi) in the aquaculture segment, and weakened raw material prices. The North America Operation Unit likewise pulled off revenue and earnings increases as a result of the Unit's conscious efforts to shorten pollack fishing operation periods in the Bering Sea and cut back on expenses by consolidating vessel companies; rebounded surimi prices in the domestic market also contributed.

The Marine Products Tradings Unit, just like other segments within Fishery Operations, registered swollen revenues and income. Such priority commodities as shrimp, salmon, and crab demonstrated solid sales.

Stagnant sales within market circulations and soared fresh fish auction prices led revenues and profits to tumble in the Storage and Logistics Operation.

Food Operations reported sales in the amount of \68.743 billion, down 2.4 percent, and operating earnings in the amount of \3.393 billion, up 3.7 percent.

The Frozen Foods Business Unit suffered reduced sales and earnings resulting from lethargic sales volume to the restaurant sector as well as fueled prices of the main raw materials. The Processed Foods Business Unit experienced diminished sales because of markdowns of canned products and moribund moves of gift products; nonetheless, cost reductions performed at production sites in Hokkaido wound up with profit growth.

The original article was published on August 3, 2010 and was translated by Kiyo Hayasaka.

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