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Daito Gyorui’s Financial Results Cite Profitability Despite Contracted Revenues

May 21, 2012

Daito Gyorui posted its consolidated results for the fiscal year ended March 2012. Despite net sales slumping 4.4 percent YOY to 137.8 billion yen, operating profit was 93 million yen as opposed to a loss of 51 million yen in the previous year. Ordinary income leaped 98.7 percent, totaling 86 million yen. With extraordinary profit of 354 million yen from revisions in retirement benefits and an extraordinary loss of 282 million yen from severance allowances resulting from the restructuring of affiliated companies, a net loss finished at 91 million yen. A term-end dividend remained at 3 yen per share.

Seafood wholesaling business was adversely affected by a plunge in transactions, leading to sales in the amount of 123.3 billion yen, down 5.6 percent. A segmental profit loss was 97 million yen, lower than initially projected, in contrast to a deficit of 168 million yen last term. As a consequence of the March 11 catastrophe and higher prices of imported raw materials, transaction quantities and sales of fresh and frozen fish tumbled.

Seafood warehousing and processing/distributing netted 14.231 billion yen in sales, an increase of 7.3 percent, and segmental profit ended at 118 million yen, a significant profit increase from 25 million yen recorded last term.

The Company aims for net sales of 129.6 billion yen, operating earnings of 300 million yen, ordinary income of 300 million yen, and net profit of 160 million yen for the current term.

Advisor Aoki Appointed As New President

Advisor Nobuyuki Aoki will assume the position of President and Representative Director of the Company as of June 26. Hideki Kamo, the current president of the Company, will retire from the position.

Mr. Aoki became part of the workforce of Taiyo Gyogyo in 1974. After fulfilling the positions of Maruha Managing Director and Maruha Nichiro HQ Managing Director/Operating Officer, he became a director in June 2005 and a managing director in April 2006 at Maruha Nichiro Group. He was also selected as Managing Director of Maruha Nichiro Holdings in April 2011 and started the current position in April this year. He was born in May 1951.

Picture 1: Mr. Aoki

The original article was published on May 21, 2012 and was translated by Kiyo Hayasaka

Toyo Suisan Racks Up 25.5 Bn Yen in Operating Proceeds

May 15, 2012

Toyo Suisan released its financial report card for the year ended March 2012: net sales 321 billion yen (up 4.9 percent YOY); operating profit 25.5 billion yen (down 1.1 percent); ordinary income 27 billion yen (0.7 percent); and net proceeds 16.1 billion yen (up 29.8 percent). An annual dividend was 50 yen, which included a special dividend of 10 yen to commemorate the Company’s 60th year anniversary.

In the segment of seafood business, some subsidiaries ravaged by the Grate Eastern Japan Earthquake struggled to fully resume their operations; despite which, the Company exerted itself to develop and market new products mainly of its flagship items of salmon, trout, fish roe, frozen Southern fish species, and tunas. Sales finished at 32.6 billion yen, down 2.4 percent compared to the previous business year, and profit of the segment spiked 22 percent to 864 million yen.

Overseas instant noodle operations executed price increases between the late second quarter and the third quarter. Collaborative efforts with major mass retailers led to a marked hike in sales. Resultantly, this segment registered 57.6 billion yen in net sales, up 15 percent, and 8.3 billion yen in profit, a growth of 11 percent.

Domestic instant noodle business witnessed an extra-large open price product, Gotsu Mori, being favorably accepted, in addition to its flagship brands of Akai Kitsune Udon, Midori no Tanuki Soba, Men Zukuri, and Mukashi Nagara no Sauce Yakisoba. In the category of packaged noodles, Maru-chan Seimen, which utilizes a new technology that keeps the freshness of uncooked noodles, benefitted from an aggressive promotional effort. The overall sales came to 106.6 billion yen, representing a 4.8 percent hike. Conversely, profit suffered an 8.0 percent drop, totaling 10.7 billion yen, which resulted from skyrocketing raw material costs such as wheat flour and buckwheat flour and expenses for new manufacturing lines.

Chilled Foods Suffer Relentlessly Harsh Conditions

The segment of chilled foods has been suffering a shrinking uncooked noodle market under the harsh market conditions. Nonetheless, the segment’s topline product, 3-pack yakisoba, exceeded the prior year’s result. Revamped 3 pack uncooked noodles were well accepted by consumers. 3-pack tama-udon and 2-pack uncooked ramen products got caught in a price war with the competition. In the category of frozen foods, both frozen noodles and frozen vegetables moved quite well; yet they failed to make up for a loss in sales of cooked frozen foods, part of which was terminated due to the March 11 disaster. The segment cited sales in the amount of 63.4 billion yen and proceeds in the amount of 3.6 billion yen, down 16 percent.

Rice products in processed foods business reported declined revenues owing to manufacturing plants damaged in the quake. Freeze-dry products meeting the current demand of convenient and unadulterated products moved well. Newly added products to the category of condiments contributed to steady performance of this category. The segment reported a 6.0 percent drop to 17.2 billion yen in sales and 578 million yen in profit, which was an increase of 6.5 percent.

Large Inventories Help Cold Warehousing Register Revenue, Profit Increases

Cold warehousing experienced nationwide increases in shipments. The earthquake and tsunamis forcing goods in the Tohoku area to spread outside of the region and energy-saving efforts during the summer season prompting food makers to up the amount of reserves, contributed to a high level of inventory throughout. Revenues from storage and freight fees were more than the previous year results. Saihoku Toyo, Shonan Toyo, as well as Suruga Toyo were included in the consolidated results, which resultantly helped the segment achieve a 15 percent hike in sales to 14.8 billion yen and a staggering 109 percent jump in proceeds, amounting to 1.2 billion yen.

The Company’s projections for the current year are sales of 330 billion yen, operating earnings of 27 billion yen, ordinary profit of 28 billion yen, and net income of 17 billion yen.

The original article was published on May 15, 2012 and was translated by Kiyo Hayasaka

Kyokuyo’s Fiscal Report Indicates Firm Revenue and Profit Growths

May 14, 2012

Akasaka-Tokyo based company, Kyokuyo (President Hisaki Tada), reported net sales of 181.8 billion yen, up 11.8 percent, and operating proceeds of 1.636 billion yen, up 3.0 percent, for the business year ended March 2012. Ordinary profit tumbled 4.2 percent to 1.707 billion yen and net income ended at 423 million yen, a 626 percent leap from 58 million yen last year. A dividend remained at 5 yen.

Marine Products Purchasing racked up a 12 percent hike in sales to 88 billion yen, however saw operating earnings go down by 12 percent to 1.4 billion yen. Whereas during the first six months the market showed a firm trend, the rest of the year experienced a volatile market move involving salmon in particular, worsening sales in Japan. Facing such obstacles, the segment took proactive action towards raw materials and made extra efforts to expand sales of value added products such as salted salmon and shucked crab and shrimp.

Favorable Results of Convenience Store Targeted Frozen Foods

Cooked Frozen Food Business reported net sales of 48.6 billion yen, a jump of 15 percent, and a 121 percent rise in operating profit, totaling 546 million yen. Overall sales of frozen seafood, sushi topping in particular, struggled to fare well due to skyrocketing raw material costs. Nevertheless, expanded products targeting convenience stores, e.g. fried seafood, processed crab, and crab flavored kamaboko products, exhibited favorable performances.

Subcontract plants for canned seafood in Canned Food Business suffered damage brought upon by the 2011 Tohoku earthquake and tsunami; to offset which, imported canned tuna and canned meat, and seafood delicacies were introduced. This segment pulled off a 5.0 percent increase in sales, ending at 14.4 billion yen; profit, however, went downward to 230 million yen, down 23 percent, as a result of hit-the-roof prices of raw materials and price hikes in empty cans.

Tuna Business pulled off increases in sales and gain. Sales surged 12 percent to 27.2 billion yen and operating earnings represented a 78 percent growth, finishing at 634 million yen. In Tuna Fishery Business (overseas purse seine), a reduced amount of landings led to contracted revenues; and yet a firm price trend helped the segment finish strong with increased profits. Thanks to a highly regarded farmed tuna “Honmaguro no Kiwame,” both sales and earnings exceeded the previous year results. Processing and Wholesaling Business that involves tuna and bonito, benefited from aggressive sales expansion effort, leading the segment to swollen revenues, however higher raw material costs resulted in an inevitable profit decline.

Plunging transportation fees brought problems for the Logistics Business with an 11 percent tumble in sales to 3.5 billion yen and a profit deficit of 850 million yen, as opposed to a loss of 385 million yen in the previous fiscal term.

The company projects the current fiscal year’s goals as follows: sales of 185 billion yen, operating profit of 3.2 billion yen, ordinary income of 3.1 billion yen, and net income of 1.8 billion yen. The company’s 2012-2014 midterm business plan, Power Up Kyokuyo 2012, aims for the final net sales in the amount of 200 billion yen and operating income in the amount of 5 billion yen.

The original article was published on May 14, 2012 and was translated by Kiyo Hayasaka

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