Kikkoman has raised its full-year sales and earnings outlook following a strong performance in the first six months of its financial year.
The Japan-based soy sauce and food products company reported a 13% increase in revenue for the six months ended September. Operating profit and net income both climbed by more than 20% during the period.
In its results presentation, Kikkoman said first-half revenue from its overseas soy sauce operations, international wholesale business and Japan operations, excluding foreign-exchange effects, was “generally in line with expectations”.
Profit performance “exceeded expectations”, although the company noted that the result was influenced in part by “a timing shift” in advertising expenditure and “a temporary profit-boosting factor” within its North American wholesale business.
Kikkoman said profitability improved despite increased input costs, including expenses associated with the geopolitical situation in the Middle East.
Revenue for the first half reached Y405.49bn ($2.55bn), representing a 13.1% year-on-year increase. Operating profit advanced 24.1% to Y49.18bn, while profit attributable to owners of the parent rose 22.1% to Y38.25bn.
For the financial year ending in March, Kikkoman now expects revenue to reach Y816.4bn, an increase of 9.5% compared with the previous year.
The company is forecasting operating profit of Y79.6bn, up 4.8%. However, it continues to anticipate a 0.5% decline in profit attributable to owners of the parent, to Y61.3bn.
Kikkoman’s earlier revenue and operating profit projections stood at Y799.1bn and Y78.8bn, respectively.
The company opened its third US manufacturing facility in September. Located in Jefferson, Wisconsin, the plant began shipping products such as soy sauce and teriyaki sauce last month. Kikkoman expects the site to help expand its production capacity by approximately 40% over the next decade.
Kikkoman established its first US factory in 1972 in Walworth, Wisconsin. It added a second American production site in Folsom, California, in 1998.
