Profits Boost for Nippon Meat Packers14 May 2013
JAPAN - Japanese meat processor Nippon Meat Packers has readjusted its sales forecast for the year down but sees its net income rising.
The company now sees consolidated net sales down from a predicted ¥1,040 billion to ¥1,022.8 billion and operating income down to ¥28 billion from a forecast ¥30 billion.
However, the company now sees consolidated net income rising from ¥13.5 billion to ¥16.4 billion.
A statement from the company said: “Net sales are expected to decrease from the previous forecast due principally to depressed markets for domestic pork and poultry.
“With regard to profits, operating income is expected to decrease from the previous forecast due to depressed markets for fresh meats and rises in prices of feedstuff, raw materials and fuels, among others, while income before income taxes and equity in earnings of associated companies and net income attributable to Nippon Meat Packers, Inc. are expected to exceed the previous forecast due to insurance proceeds from the flood damage in Thailand, as well as foreign exchange gains on yen-denominated loans and reduced income tax expense as a result of improvement in performance by overseas subsidiaries.”
However, Nippon Meat Packers sees its non-consolidated sales decreasing by ¥47.7 billion and non consolidated net income falling by ¥2.21 billion to ¥9.69 billion.
The company statement said that non-consolidated net sales “are expected to decrease from the previous forecast due principally to the organisational restructuring of the hams and sausages factories made during the fiscal year under review. Net income is expected to decrease from the previous forecast due principally to an addition to allowances for doubtful receivables in respect of loans receivable from associated companies”.
Because of the better than hoped for consolidated profits the company has now increased its dividend forecast.
TheMeatSite News Desk