Tokyo, Japan-based Nippon Suisan Kaisha (Nissui) reported sales down by 3.1 percent to a little over JPY 690 billion (USD 6.4 billion, EUR 5.8 billion), operating profit up by 5.3 percent, and profits attributable to owners of the parent company down by 4 percent. The company projects a 2.9 percent decline in sales and a 16.7 percent decline in operating profit in FY2021, which began in April 2020.
The effects of COVID-19 on overseas subsidiaries is not reflected in the current report, due to the company’s use of calendar-year reporting, meaning their results through December 2019 are consolidated in the parent’s report.
Nissui’s main segments of Marine Products and Food Products both saw a marginal fall in sales, but a rise in profits of 15.2 percent and 7.1 percent, respectively. In its Fishery business, both revenue and income decreased due to a significant reduction in catch of mackerel and horse mackerel, and a drop in the price of bonito.
In the firm’s Aquaculture business, both revenue and income increased. In Japan, sales of farmed tuna increased, but prices fell as people stopped eating out due to the nation’s coronavirus-related lockdown, so product inventory was devalued. Juvenile salmon/trout grew poorly in the first fiscal quarter, resulting in lower sales but higher profits. In South America, salmon farming recovered after deaths of juveniles in the previous year. Revenue and income increased significantly.
In Nissui’s Seafood Processing and Trading Business, revenue decreased but income increased year-on-year. In Japan, sales of yellowtail increased, though the price fell toward the end of the fiscal year. The firm’s salmon and trout business struggled. In North America, strong surimi prices pushed up revenue, but higher costs caused income to fall. In Europe, revenue and income fell as volumes on some fish declined, while the exchange rate was unfavorable.
In Nissui’s Food Products segment, the processed food business had lower sales, but income rose. In the reporting period, frozen food for both household and food service increased. But since March, people have been avoiding eating out, so household use foods are selling well while foodservice sales are down.
In North America, improved productivity in frozen food production helped Nissui increase sales and income, and in Europe, the compay’s sales were stable. Due to the novel coronavirus, Nissui forecast a decline in sales for eating out and an increase in sales for eating at home that will affect its future earnings.
Also this week, Tokyo-based Kyokuyo issued a financial overview for the previous fiscal year. The company’s consolidated revenue rose to JPY 262.5 billion (about USD 2.4 billion, EUR 2.2 billion), up 2 percent from the FY2019. But consolidated recurring income was down by nearly 19 percent to JPY 3.6 billion (USD 33.4 million, EUR 30.1 million). Consolidated profit attributable to owners of the parent were down 30 percent.
The company said it plans to increase its value-added food production, including meat and frozen vegetables, and to strengthen overseas procurement for canned mackerel and sardines. It will also aim to expand imports of farmed tuna and to develop sales to the users, and to utilize materials from overseas purse-seiners.
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