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Toyo Suisan Records Marked Profit Decline in Seafood Business in FY2013

May 16, 2013

The consolidated results of Toyo Suisan Kaisha, Ltd. for the fiscal year ended March 2013 were sales of 344.5 billion yen, up 7.3 percent from the previous term; operating profit of 29.6 billion yen, up 16.1 percent; ordinary proceeds of 32 billion yen, up 18.6 percent; and net income of 17.3 billion yen, up 7.2 percent.

In seafood business, sales nudged down by 0.6 percent to 32.4 billion yen, which was attributed to aggressive development and sales of added-value products consisting of its mainstay items, fish roe, tuna, and squid. Deteriorating market prices of farmed salmon (Chilean coho salmon) and trout, and mackerel, swollen depreciation expenses resulting from rehabilitating consolidated subsidiaries and partially repairing seafood-processing plants in the Sanriku region, and the progressively weakening yen led profit to significantly drop by 94.3 percent to 49 million yen.

In chilled foods business, despite efforts to promote and revamp its mainstay, Yakisoba 3 pk (Japanese chow mein) the product sales slightly slumped. However, a new product, Naporitan Spaghetti (3 servings) moved favorably. Japanese noodles, udon and soba, exhibited steadfast performances; nevertheless, uncooked ramen noodles had a trying time as a result of ferocious price competition, leading the category of uncooked noodles to perform worse than last year. Belying a relentlessly growing price war involving commercial frozen noodles, frozen foods business exerted extra efforts to develop new clients and expand sales in restaurant and school lunch sectors, reaching favorable results. The segmental sales ended at 62.1 billion yen, or down 2.1 percent. Profit had to bear the brunt of a spike in merchandising expenses, terminating in a 1.1 percent decline to 3.567 billion yen.

The Company’s projection of a new fiscal year is sales of 370 billion yen, up 7.4 percent; operating earnings of 31 billion yen, up 4.6 percent; ordinary income of 32 billion yen, about the same as the previous year; and net income of 20 billion yen, up 15.7 percent.

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