KUALA LUMPUR (Feb 24): Ajinomoto (Malaysia) Bhd’s net profit decreased 77.58% to RM2.30 million or 3.79 sen per share for the third quarter ended Dec 31, 2022 (3QFY2023), from RM10.26 million or 16.87 sen per share for the same quarter a year earlier, due to higher operational costs and finance expenses.

In a filing with Bursa Malaysia on Friday (Feb 24), the group attributed the lower earnings to higher material costs, staff costs, transitional costs related to factory relocation, and sales promotion expenses. Additionally, it also booked a RM1.2 million expense mainly for the financing cost arising from its Islamic financing facility.

Revenue for the quarter improved 8.93% to RM146.17 million, against RM134.18 million previously, on the back of higher contributions from the consumer business segment, according to the bourse filing.

For the cumulative nine months ended Dec 31, 2022, net profit fell 87.24% to RM4.39 million, from RM34.41 million a year earlier.

Revenue, meanwhile, increased 24.08% to RM445.83 million, from RM359.31 million previously, due to higher revenue contributions from its consumer business and industrial business segments.

“The company expects continued challenges from inflationary pressure, fluctuations in foreign exchange rates, and high purchase prices for key raw materials,” said Ajinomoto Malaysia.

“The management will continue to focus on sales growth, cost efficiency, and monitoring market development to sustain business growth.”

Ajinomoto Malaysia’s share price closed unchanged at RM15.20 on Friday, giving it a market capitalisation of RM824.14 million.