Maruha Nichiro Holdings shares yesterday jumped 7.5 percent on the Tokyo stock exchange, its highest in seven weeks, after a merger improved profits and the company announced it would buy back shares.
The company said through Sept. 30 it will spend up to 1.5 billion yen ($13.7 million) to buy back 1.26 percent of its shares from subsidiaries.
Operating profit for the three months ending June 30 increased by 42 percent to 6.08 billion yen ($55.2 million) on a 25 percent gain in sales. The company cited the merger with Nichiro Corp. and increased revenue from a North American fishery for the gain.
Net income for the period totaled 2.16 billion yen ($19.7 million), 86 percent of the company’s annual goal. Last year, Maruha Nichiro earned 2.7 billion yen ($24.6 million).
