Tokyo, Japan-based Maruha Nichiro Corporation booked its most-profitable quarter since the current company was formed by a merger, and announced plans to offer a “blue bond.”
Maruha Nichiro was formed through a 2007 merger of Japan’s largest and third-largest seafood companies, Maruha Group Inc. and Nichiro Corp. It released its Q1 results covering the period April through June 2022 on 8 August, 2022.
Net sales reached JPY 232.6 billion (USD 1.74 billion, EUR 1.69 billion), up 14.9 percent year-on-year. The company’s operating income was JPY 7.9 billion (USD 59.4 million, EUR 57.6 million), a gain of 24.9 percent; while its ordinary income was JPY 12.2 billion (USD 91.7 million, EUR 89.1 million), in increase of 72 percent. Net income attributable to owners of the parent was JPY 7.7 billion (USD 57.9 million, EUR 56.2 million), a 52.1 percent rise. All of these figures marked new records for the company.
The company said that sales were particularly strong in its petfood business based in Thailand, and its Alaska pollock business in North America. Additionally, sales of marine products – including farmed fish – to foodservice and institutional food businesses recovered from the effects of COVID-19 measures. Its sales of Patagonian toothfish were strong, but its operating profits were hurt by higher fuel and transport costs. Its aquaculture production volumes and prices are rising, the company said, and an expectation in the market for higher marine product prices has helped the company sign higher-priced contracts.
Maruha Nichiro said market prices of marine products will remain high, that price hikes on processed products will result in higher net sales, and that the weak yen will result in higher returns from overseas subsidiaries when its profits are converted to yen.
Additionally, Maruha Nichiro said it plans to issue Japan's first “blue bond,” a bond limited to marine and ocean-related projects and businesses, designed to enhance ocean health through the prevention of water pollution and sustainable use of marine fishery resources. Allocation of the proceeds has not yet been determined.
Mizuho Securities Co. will be the structuring agent, providing support for the issuance by developing a blue finance framework and providing advice on obtaining an external third-party evaluation that will evaluate its conformity with international principles and guidelines.
