Ajinomoto (M) Bhd started its new financial year with lower profitability, as its profit after tax (PAT) slipped 4.1% to RM23.2 million from RM24.2 million a year earlier amid softer revenue, higher promotional spending and increased freight costs.
Revenue for the quarter eased 1.1% to RM178.9 million from RM180.9 million despite higher sales volumes across both its Consumer and Industrial Business segments.
The company attributed the softer topline mainly to a weaker US dollar, which reduced revenue from exports, while exports of AJI-NO-MOTO® were also affected by geopolitical issues in the Middle East.
Its Industrial Business recorded higher sales volumes, supported by stronger demand for “TENCHO” products, although the weaker US dollar similarly weighed on revenue.
Operating profit declined to RM27.8 million from RM29.3 million, reflecting lower sales revenue as well as higher sales promotion and freight expenses.
Looking ahead, Ajinomoto Malaysia expects global economic and geopolitical volatility to remain challenging, potentially adding pressure to raw material, energy and distribution costs.
The company said it will continue implementing targeted sales strategies, improving operational efficiency and closely managing costs to support business growth.
