In the period under review, the Japanese economy began to weaken in the first half of the fiscal year, and from autumn 2008 the financial crisis originating in the US caused economies throughout the world to enter extremely severe downturns. As concerns spread of a global recession, corporate profits decreased rapidly and consumer spending in Japan deteriorated, influenced by factors such as increasing uncertainty about employment.
In the Japanese food industry, the business environment became extremely severe as a result of substantial rises in prices of raw materials and fuels, a cooling of consumer confidence due to the economic recession, and other factors.
Within this environment, the Ajinomoto Group focused its efforts on pursuing reforms on all levels throughout the entire group, and extensively reducing costs and strengthening the business structure, aiming to be successful in the increasingly severe operating environment and to overcome competitive pressures.
However, consolidated net sales for the fiscal year ended 31 March 2009 decreased 2.2% (¥26.2bn) year on year to ¥1,190.3bn. Operating income decreased 32.5% (¥19.6bn) to ¥40.8bn, and ordinary income decreased 53.5% (¥29.8bn) to ¥25.9bn. Ajinomoto recorded a consolidated net loss of ¥10.2bn for the period, as a result of posting impairment losses and other extraordinary losses of ¥27.3bn.
Source: Ajinomoto Group
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