KUALA LUMPUR (Aug 26): Ajinomoto (Malaysia) Bhd's (KL:AJI) net profit jumped 54.99% to RM18.93 million in the first quarter ended June 30, 2024 (1QFY2025) from RM12.21 million a year before, as revenue and finance income climbed.

Earnings per share rose to 31.13 sen from 20.08 sen previously, its bourse filing showed.

The food and seasoning company's quarterly revenue rose 15.42% to RM171.44 million in 1QFY2025 from RM148.53 million in 1QFY2024 on better contributions across consumer business and industrial business segments.

Revenue from its consumer business rose 15.76% to RM130.7 million from RM112.9 million, driven by higher sales volume in both domestic and export markets. Its industrial business, meanwhile, saw revenue rise 14.32% to RM40.7 million from RM35.6 million, underpinned by higher sales volume of industrial seasoning products.

The company's finance income came in at RM2.6 million in 1QFY2025, up from RM368,000 previously following an increase in placement of funds with licensed financial institutions.

It did not declare any dividends for the quarter under review. Ajinomoto just paid a special one-off dividend of RM2.12 per share on May 30 that amounted to RM128.89 million in respect of its FY2025. Subsequently, the group declared in June a first and final dividend of 38.40 sen per share for its FY2024, which amounted to RM23.34 million, to be paid on Sept 25.

Looking ahead, the company said costs of imported raw materials to manufacture its range of products, as well as packaging materials, remain high, while the unresolved Red Sea matter continues to impact shipping schedules and shipping costs.

“The company will continue to be agile in addressing cost impacts on its profitability as well as implement measures to protect its market share,” it said.

Ajinomoto's share price closed six sen or 0.4% lower at RM14.48 on Monday, bringing the group a market capitalisation of RM880 million. Compared to its recent closing peak of RM20.30 on May 3 this year, it has fallen 29%.