Consumer price increases for frozen foods enabled two of Japan’s biggest seafood companies to boost net profits for the nine-month period of April-December 2015. However, a third company did not fare well due to production losses in Thailand, reported the Nikkei Asian Review on February 9.
The net profits of Tokyo-headquartered Maruha Nichiro rose 3% for the entire year to approximately 9 billion yen ($77.3 million). In addition to the benefit of higher prices in the domestic market, demand for convenient-to-prepare frozen products increased in the restaurant sector due a shortage of skilled kitchen labor.
“Resumed production at a Gunma Prefecture plant shut down after a pesticide contamination scandal in 2013 helped as well,” Nikkei reported. “Sales edged up 2% to 683 billion yen.”
Year-on-year net profit for Nippon Suisan Kaisha advanced 6%. The bottom line was positively impacted not only from higher prices at home, but from greater sales of processed seafood to restaurant operators in the United States.
On the negative side of the ledger, net profit fell 60% for Kyokuyo. While operating profit increased 8%, “extraordinary losses surged from shoring up loan-loss reserves for a Thai food processing company that works with Kyokuyo,” according to the Nikkei dispatch.
