Tokyo, Japan-based Maruha Nichiro Corporation reported improved consolidated financial results for its fiscal year ending 31 March, 2022.
The company’s net sales were JPY 866.7 billion (USD 6.67 billion, EUR 6.31 billion) in the past 12 months, up 7.1 percent year-on-year. The company’s operating income was JPY 23.8 billion (USD 183.3 million, EUR 173.7 million), up 47.3 percent; ordinary income was JPY 27.6 billion (USD 212.1 million, EUR 200.9 million), up 52.5 percent; and net income attributable to owners of the parent was JPY 17 billion (USD 129.8 million, EUR 123 million), up 193.7 percent.
The company’s report indicates it has reorganized its former five business segments of fisheries and aquaculture, trading, overseas, and processing and logistics into three segments: marine products, processing, and logistics.
Maruha Nichiro's marine products business saw net sales rise by 9 percent year-on-year in FY2022 and its operating income increased 194.8 percent year-on-year.
The company reported its aquaculture unit benefited from higher tuna sales volumes to major consignees and volume retailers, improved selling prices, and lower tuna costs. Higher yellowtail market prices also contributed to an improved result for the division, despite continued effects of COVID-19 on sales to restaurants.
In the company's marine products trading unit, sales to mass merchandisers, home-delivery services, medical institutions, and senior citizen facilities were expanded, resulting in an increase in both sales and profits, partly due to higher unit sales prices for each fish species.
The company’s cargo receiving unit – involved in distribution – also reported higher revenues and profits due to expanded sales to mass merchandisers, higher unit sales prices of frozen products, and improved profit margins.
The company's overseas business unit experienced lower sales and income decline in North America due to withdrawal from its unprofitable salmon/trout business - the company sold Peter Pan Seafoods in November 2020. In Europe, sales and income increased through an additional investment in a sales company, and from higher sales overall. In Asia, sales increased due to the acquisition of a Vietnamese processing and sales company, while in Thailand, pet food sales and profits increased due to cheaper raw materials and higher sales, the company said.
In Maruha Nichiro's processing business, sales of frozen foods for household use increased, but earnings declined due to higher raw material, ocean freight, and energy costs.
Its processed foods for home use unit also reported lower sales, attributable to customers having already stocked up on shelf-stable seafood in earlier phases of the COVID-19 pandemic. Nevertheless, taking into account other processing units, Maruha Nichiro said the unit's net sales rose 4.9 percent and its operating profit was up by 3.7 percent.
In the company’s logistics business, sales fell by 6.2 percent on lower inventories, while depreciation and amortization on a new distribution center in Nagoya dragged down operating income by 46.5 percent.
Photo courtesy of Maruha Nichiro
