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OUG Holdings’ Fiscal Results Cite JPY 1.9B in Operating Profit

May 19, 2014

OUG Holdings’ previous fiscal year that ended March 2014 experienced buoyant turnover thanks to increased unit sales prices, ending in a 2.8 percent hike from the previous year to JPY 312.4 billion (€2.25 billion$3.08 billion). A higher-than-expected gross profit margin helped the Holdings pull off significant increases in operating earnings and ordinary profit. Operating earnings were JPY 1.96 billion (€14.1 million/$19.3 million), which was a loss of JPY 286 million in the previous term. Ordinary profit came to JPY 1.955 billion (€14.1 million/$19.3 million) as opposed to a deficit of JPY 298 million. Booking of impairment loss resulted in net income of JPY 1.662 billion (€11.9 million/$16.4 million) versus a net loss of JPY 637 million in the previous term.

Sales reported by seafood wholesale business were JPY 194.2 billion (€1.4 billion/$1.91 billion), or up 1.7 percentage points with profit of JPY 1.197 billion (€8.61 million/$11.8 million), which was a loss of JPY 30 million in the prior term. The overall transaction amount contracted; however, unit sales prices hiked. An improved gross profit margin and a cutback on secondary costs brought about increases in turnover and profit.

The non-market seafood wholesale business racked up JPY 116.3 billion in sales (€836 million/$1.15 billion), an increase of 4.3 percent. Profit of JPY 377 million (€2.4 million/$3.3 million), as opposed to a deficit of JPY 44 million, was recorded. Even though unit sales slumped, steep price rises of shrimp and other items helped unit sales prices to go up.

Aquaculture business reported sales in the amount of JPY 6.814 billion (€49 million/$67.1 million), up 14.7 percent and profit in the amount of JPY 214 million (€1.54 million/$2.1 million), which was a loss of JPY 341 million. The market of farmed amberjack, buri, nicely recovered. A hike in production costs didn’t create any adverse effect; instead, an effect on increased productivity and curtailed expenses turned up profit.

Sales cited by food processing business were up 12 percentage points to JPY 4.83 billion (€34.7 million/$47.6 million). Conversely, a loss of JPY 106 million (€762,000/$1.04 million), in contrast with a deficit of JPY 150 million, was registered. Sales expanded in line with a strategy of stable production of frozen, salted salmon products, despite which a loss was reported on account of raw material cost hikes and lackluster selling prices.

OUG Holdings projected the following numbers for the current fiscal term: sales of JPY 315 billion (€2.27 billion/$3.1 bullion), operating profit of JPY 1.8 billion (€12.9 million/$17.7 million), ordinary earnings of JPY 1.8 billion (€12.9 million/$17.7 million), and net income of JPY 1.2 billion (€8.6 million/$11.8 million).

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