KUALA LUMPUR (Nov 28): Ajinomoto (Malaysia) Bhd’s net profit for its second quarter ended Sept 30, 2023 (2QFY2024) rose three folds to RM10.35 million, from RM2.94 million a year earlier, lifted by its consumer business segment.

Earnings per share increased to 17.03 sen from 4.83 sen, the group's bourse filing showed.

Quarterly revenue rose 3.93% to RM164.36 million from RM158.15 million in 2QFY2023.

Ahinomoto said the consumer business segment, which consists of the manufacture and distribution of products such as AJI-NO-MOTO, recorded an operating profit of RM13.61 million, reversing from an operating loss of RM1.92 million in 2QFY2023, led by better selling price and lower administrative expenses.

The segment’s revenue rose to RM127.14 million from RM116 million.

However, the group's industrial business segment recorded a lower operating profit of RM787,000 compared with RM6.75 million previously due to a decrease in sales quantity and higher raw material costs. The segment’s revenue also declined to RM37.22 million from RM42.15 million.  

For the first six months of FY2024, Ajinomoto’s net profit increased by over 10 times to RM22.57 million, from RM2.09 million in the same period of FY2023, as revenue expanded 4.42% to RM312.89 million from RM299.66 million.

On prospects, the group said the economic conditions globally and in Malaysia remain challenging, given the cost of living and the weak ringgit are headwinds which are expected to impact consumer spending.

Ajinomoto said it will continue to monitor the business environment and review its strategies and implement required actions accordingly in order to ensure the group’s profitability and growth.

Ajinomoto's share price closed up 42 sen or 2.7% at RM16 on Tuesday, for a market capitalisation of RM973 million. Year-to-date, the stock has surged 19%.