KUALA LUMPUR (Aug 24): Ajinomoto (Malaysia) Bhd (KL:AJI) on Monday reported a 3.9% decline in quarterly net profit amid a marginal fall in revenue.
Net profit for its first quarter ended June 30, 2026 (1QFY2027) stood at RM23.23 million, down from RM24.17 million a year earlier, according to a bourse filing on Monday.
Revenue eased 1.1% to RM178.91 million from RM180.90 million, as exports were affected by a weaker US dollar and geopolitical issues in the Middle East.
Still, the seasoning and food products manufacturer recorded higher sales volume in both its consumer business and industrial business segments.
By segment, the consumer business remained the company's largest contributor, with revenue of RM134.97 million, marginally down by 1.3% from RM136.78 million in 1QFY2026. However, operating profit edged up 1.84% to RM21.41 million from RM21.02 million.
The industrial business segment recorded RM43.94 million in revenue, little changed from RM44.12 million previously, while operating profit fell 22.4% year-on-year to RM6.4 million from RM8.25 million.
The company did not declare any dividend for the quarter under review.
Looking ahead, Ajinomoto said it continues to face challenges from global economic and geopolitical developments, which could drive up raw material, energy and distribution costs.
Hence, it said it will continue implementing sales strategies and efficiency operations with appropriate cost monitoring to drive business growth.
As at June 30, Ajinomoto had RM169.26 million in cash and bank balances, more than double the RM74.24 million recorded at end-March, while liquid investments stood at RM178.07 million.
The company had no borrowings nor did it issue any debt securities.
Ajinomoto Malaysia is currently pursuing a privatisation exercise. Its controlling shareholder, Ajinomoto Co Inc — which owns a 50.376% stake in Ajinomoto Malaysia — has proposed a selective capital reduction and repayment exercise under which shareholders other than Ajinomoto Co would receive RM20 per ordinary share.
Ajinomoto shares closed up four sen or 0.21% to RM18.88 on Monday, giving the company a market capitalisation of RM1.15 billion. Year to date, the stock has gained 38%.