Ajinomoto's 4Q net profit up 16% on higher domestic sales, better margin

by **Cals** Wed 25 May 2016, 01:39

Ajinomoto's 4Q net profit up 16% on higher domestic sales, better margin

By Tan Siew Mung / theedgemarkets.com | May 24, 2016 : 8:10 PM MYT

KUALA LUMPUR (May 24): Ajinomoto (Malaysia) Bhd's net profit rose 15.95% to RM6.59 million for the fourth quarter ended March 31, 2016 (4QFY16) from RM5.69 million a year ago, underpinned by higher domestic sales in Umami and Food & Seasoning segments and better margins from export sales arising from the appreciation in the US dollar.

The group announced to the bourse today that its revenue for 4QFY16 surged 35.99% to RM110.24 million from RM81.06 million in the previous year.

"The domestic sales in (the) corresponding quarter last year were exceptionally low due to market concerns on goods and services tax implementation in Malaysia," it said.

The group's full-year (FY16) net profit also jumped 37.18% to RM40.79 million from RM29.73 million in FY15, underpinned by its full-year revenue, which increased by 17.58% to RM400.2 million from RM340.38 million.

Given the current economic environment both locally and regionally, the group said the business and market conditions remain challenging.

It also expects the recent change in the Malaysian government's policy on foreign worker recruitment to adversely impact the production workforce.

"The management will reinforce sales and marketing activities and enhance staff retention efforts to remain competitive," it said.

Ajinomoto closed 10 sen or 0.75% lower at RM13.28 today. The counter was one of the top performers on the bourse this year, with year-to-date hike of more than 50%.