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Maruha Nichiro 2Q Cites Significant Profit Hike in Seafood Business

November 6, 2013

Maruha Nichiro Holdings, Inc. (Tokyo; managed by President Toshio Kushiro) announced its second quarterly results: Sales of JPY 411.4 billion (€3.1 billion/$4.17 billon), or up 5.6 pct from the same period last year and operating earnings of JPY 6.003 billion (€45.23 million/$60.93 million), up 3.1 pct. Ordinary profit jumped 31.1 pct to JPY 7.944 billion (€59.85 million/$80.63 million). Net income plunged 40.2 pct to JPY 3.928 billion (€29.6 million/$39.9 million).

Marine product operations reported sales of JPY 243.3 billion (€1.83 billion/ $2.47 billion), or up 3.4 pct over the same period a year ago and profit of JPY 4.05 billion (€30.5 million/$41.1 million), up 92.9 pct.

Tuna longline fishing in both fishery and aquaculture was stagnant, whereas purse seining went smoothly. In aquaculture, the market trend of grater amberjack, kanpachi, convalesced; however, tuna sales and sandfish farming exhibited dull activities.

In North American operations, downsized cod roe production and its deteriorated product composition, decreased production of Alaska snow crab caused by a reduced fishing quota, and compromised earnings from foodstuffs to Japan on account of a weaker yen led to decreases in revenues and profits.

Marine products trading registered hikes in sales and proceeds owing to rising market values of salmon, trout, and shrimp. Despite dwindled revenues, Marine products wholesaling pulled off swollen profits, because losses on Chilean salmon and trout in the last fiscal year were cleared and expenses were curtailed. Strategic sales experienced smooth businesses with mass outlets and the restaurant sector, which led to increased revenues. However, operations with convenience stores had a rough time, ending in a profit drop.

Processed food operations cited sales in the amount of JPY 158.3 billion (€1.19 billion/$1.6 billion), up 10.2 pct. Profit declined 41.8 pct to JPY 2.489 billion (€18.7 million/$25.3 million).

New commercial products of Frozen foods business favorably moved and its newly joined consolidated subsidiary Yayoi Foods Co., Ltd. contributed to increased revenues. Regardless, a weaker yen and higher material costs adversely affected its bottom line. Canned goods moved smoothly in Processed foods business.

Storage/logistics operations marked sales of JPY 7.555 billion (€56.9 million/$76.7 million), down 3.6 pct and proceeds of JPY 579 million (€4.36 million/$5.88 million), or down 8.1 pct.

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