JAPAN - Two of Japan's largest seafood companies have seen a growth in profits for the nine months ending December 2015 due to hikes in frozen-food prices.
Maruha Nichiro's net profit climbed three per cent on the year to 9 billion yen ($77.3 million), reports Nikkei.
By raising prices, the Tokyo-based company lifted profits in its domestic frozen-food business.
Commercial demand also increased on the labor shortage in Japan's restaurant industry. Resumed production at a Gunma Prefecture plant shut down after a pesticide contamination scandal in 2013 helped as well. Sales edged up two per cent to 683 billion yen.
The nine-month profit exceeded the company's projection for the entire year ending March. But Maruha Nichiro maintained its full-year forecast on a cautious outlook for the future.
Nippon Suisan Kaisha's net profit jumped six per cent on the year. It lifted profits by hiking prices on frozen and processed foods in Japan. Demand for processed seafood was also strong among restaurants in the US.
At Kyokuyo, net profit plunged 60 per cent. Operating profit rose eight per cent, but extraordinary losses surged from shoring up loan-loss reserves for a Thai food-processing company that works with Kyokuyo.
TheFishSite News Desk