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Kyokuyo Closes FY2013 with Increased Profits

May 13, 2013

Kyokuyo’s fiscal year ended March 2013 suffered a 2.1 percent turnover decline from the previous term, totaling 178 billion yen. However, operating profit jumped 42 percent to 2.324 billion yen and ordinary earnings also hiked 32.5 percent to 2.262 billion yen. Net income exhibited an exponential increase of 200 percent, ending in 1.269 billion yen.

Resurgence of Value-Added-Product Sales in Last Half Year

The seafood segment reported sales in the amount of 81.2 billion yen, down 7.7 percent over the previous year, and operating profit of 1.594 billion yen, up 16.3 percent. With the dwindling market value of Chilean coho salmon caused by a glut affecting other fish species, the first half-year experienced lackluster market prices of marine foods across the board. Nevertheless, during the latter half, better selling conditions arrived due in part to increased demand at the end of the year. A deliberate effort to handle more materials for processing and a strategy to sell more value-added-products, such as salted salmon and shelled crab and shrimp, were performed.

The frozen food segment managed to pull off a better turnover record than the term before; however, relentlessly increasing competition and production costs hindered profits from growing, leading to sales of 50.6 billion yen, up 4 percent, and operating earnings of 314 million yen, down 42.5 percent.

Frozen seafood business expanded sales of raw consumption products, mainly of sushi toppings, to leading sushi-go-around chain restaurants. In addition, more products requiring heating, such as boneless fillets, cooked fish, and pickled fish, which chiefly use mackerel, were sold as part of diet for the elderly and in home delivery service. In frozen cooked food business, an effort to move fried white fish, processed shrimp products, and crab flavored kamaboko to mass retailers and convenience stores was made.

The canned food segment posted a sales increase of 7.7 percent, amounting to 15.5 billion yen, and a 37.3 percent drop in operating profit to 144 million yen. The main cause was raw materials costs that skyrocketed.

The logistics segment failed to reach the previous year’s record in sales, nonetheless, managed to drastically shrink a loss.

Sales of 27.2 billion yen were reported by the tuna business, maintaining the same level as the prior year. Operating profit, on the other hand, enjoyed a 42 percent rise, coming to 900 million yen. Overseas purse seining performed well thanks to increased fishing quotas and steadfastly going fish prices. A reputation of their farmed tunas also heightened. The business that processes and markets tuna and bonito was hit by a lowering profit margin due to higher raw material costs and increasing competition.

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