On the back of a Y516.14 billion revenue for the first half year ended 30 September - a 5.4 per cent lift on the same period in 2002 - net profit rose a wisp by 1.8 per cent to Y12.24 billion (€0.09 bilion), up from Y12.02 billion for the same period in 2002.
The domestic food product segment, knocked by higher advertising costs and marketing expenses, saw sales rise only slightly by 1.9 per cent on the previous year to Y303.1 billion. Operating profit in the division fell 13 per cent to Y10.39 billion.
Sales in overseas food products rose a smidgen - 0.8 per cent - to Y696 billion but operating income shrank by 3 per cent to Y4.2 billion.
But healthy figures in amino acids gave a significant boost to the bottom line. The company said sales of feed-use amino acid products lysine, threonine, and tryptophan all rose, with overall sales for amino acids lifted by 16 per cent to Y72.2 billion.
Sales in the pharmaceutical division climbed a respectable 34 per cent to Y39.5 billion after Ajinomoto acquired Shimizu Pharmaceutical in December last year. However, a rise in R&D costs and the fact that 'last year's results included pricing adjustments relating to transactions in previous years,' saw operating income for the segment falling by 16 per cent to Y1.9 billion.
Dividend for the half year will be 6 yen per share, the company said. No change from the previous year. Full the full year, Ajinomoto forecast a net profit of Y35 billion.
At the beginning of last year the Japanese company announced that it would boost its production capacity of amino acid lysine in a move to focus on its core businesses to strengthen the bottom line over the mid-term. The company's first half year results reveal the strategy could be paying off.