Ajinomoto's group net balance returns to black in FY 2001.

TOKYO, May 17 Kyodo

Ajinomoto Co., a major food maker, said Friday it returned to the black in its group net balance in the year to March 31 due mainly to spirited sales of pharmaceuticals and dietary supplements.

Consolidated net profit in fiscal 2001 came to 31.44 billion yen, a turnaround from the previous fiscal year's loss of 11.55 billion yen.

The company noted its net balance also improved because it was freed from the need to set aside profits to plug a shortfall in reserves for paying out retirement benefits, the previous year's heaviest drag on its net profitability.

In fiscal 2000, Ajinomoto set aside 52.67 billion yen to cover the shortfall, in addition to incurring a 12.16 billion yen loss on winding up affiliates.

Group pretax profit shot up 26.8% to 56.22 billion yen on a 3.9% group sales increase to 943.54 billion yen, the company said.

Though domestic food sales fell slightly, sales of medical products fared well. In overseas markets, food sales rose strongly in Asia. Firm demand was seen for amino acid products used in animal feed in Europe and other regions.

The company said it will pay a full-year dividend of 10 yen per share, unchanged from the previous year.

For the year ending March 31 next year, Ajinomoto expects, on a consolidated basis, a net profit of 32 billion yen, pretax profit of 59 billion yen and sales of 990 billion yen.