Maruha Nichiro reported higher revenue and an increase EBITDA on higher sales in its marine resources and processed foods segments – with the company crediting the Japanese economy being on a positive trend for the increase.
Maruha Nichiro reported net sales of JPY 828.1 billion (USD 5.4 billion, EUR 5.3 billion) for Q3 in the year ending March 2025, an increase of 5.2 percent over the JPY 787.3 billion (USD 5.2 billion, EUR 5 billion) it posted in the same period of the prior year. Profit attributable to the owners of the parent also increased slightly to JPY 23.2 billion (USD 152 million, EUR 148 million), up from JPY 22.4 billion (USD 147 million, EUR 143 million).
The company’s EBITDA also increased, rising 9.8 percent, or JPY 3.9 billion (USD 25.6 million, EUR 24.9 million), to JPY 43.9 billion (USD 288 million, EUR 280 million).
The increase was entirely thanks to increases in its marine products and processed foods business, according to its results. The company said the Japanese economy was in a positive trend during the quarter, with gradual recover – though it also said there are concerns about the risk of a potential downturn due to the “unstable global situation” and potential monetary tightening.
For its marine products trading unit, Maruha Nichiro said efficient use of working capital and proper inventory management, helped the segment increase its operating income by JPY 2.6 billion (USD 17.1 million, EUR 15.6 million) year over year, while net sales remained on par with prior years.
In its processed foods business, Maruha Nichiro credited the improved productivity and strong performance of its pet food business for a JPY 3.3 billion (USD 21.7 million, EUR 21.1 million) increase in operating income.
The positive performance of its marine products and processed foods helped offset a downturn in its marine resources business segment. While the company’s fishery business performed well, with increased net sales of JPY 34.1 billion (USD 224 million, EUR 217 million) – an increase of 23.3 percent compared to the same period last year – higher costs in other sectors reduced operating income.
Maruha Nichiro said its aquaculture business unit’s operating income decreased due to lower growth of its farmed fish “caused by high water temperatures.” The company also cited high feed prices in the JPY 1.3 billion (USD 8.5 million, EUR 8.3 million) reduction in operating income for the period, which lead the segment to lose JPY 600 million (USD 3.9 million, EUR 3.8 million) overall.
The company’s North American operations also saw decreased income, which the company attributed to the market for surimi and fillets for Alaska pollock, which it said “continued to be weak,” though sales increased overall.
“Net sales increased due to higher sales volume of Pacific cod product,” the company said.
The company said that the Alaska pollock trend appears to be approving, but business costs remain high.
“Efforts will be made to optimize production and sales items and maximize production efficiency,” it said.
The segment posted a JPY 1.5 billion (USD 9.8 million, EUR 9.5 million) decrease in its operating income year over year, dropping to JPY 2.4 billion (USD 15.8 million, EUR 15.3 million).
All told, the company’s marine resources business segment only achieved an operating income of JPY 1.9 billion (USD 12.5 million, EUR 12.1 million), down 53 percent from JPY 4.1 billion (USD 27 million EUR 26 million) it posted in Q3 last year.
The company said the “challenging business environment” that its marine resources business segment is facing will likely continue.
“The business environment is expected to remain challenging in terms of fuel oil and other costs,” Maruha Nichiro said. “We will review our operational structure, including the number of vessels and timing of operation, and diversify our sales channels.”
The company said in its aquaculture segment it expects demand for yellowtail to remain strong after solid sales at the end of 2024.
“On the other hand, feed prices remain high, and domestic tuna prices are expected to be sluggish. While implementing measures to reduce raw material costs, we will focus on expanding exports, particularly to Asia, and work on increasing selling prices,” Maruha Nichiro said.
