Ajinomoto Co Inc

Analysis

Business Description

Ajinomoto Co Inc (Ajinomoto) is a global manufacturer of seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals.

The company classifies its business operations into four reportable segments: Seasoning and Foods, Frozen Foods, Healthcare and Others and Other.

Business Segments
Overview

Provides amino acids, pharmaceuticals and others. Offers amino acids for pharmaceutical and food products. The company also provides pharmaceutical contract manufacturing services.

The segment classifies its segment into two product categories: Amino acids and other.

Performance

Reported revenue of JPY1,36,355 million for FY2020, which grew 0.7% YoY, and recorded a CAGR of 6.6% during 2018-20. The segment accounted for 12.4% of the company's revenue in FY2020. It reported operating profit of JPY12,363 million in FY2020, which grew 2.4% YoY.

Inventore veritatis
Overview

Consists of consumer foods and Umami seasonings for processed food manufacturers.

The segment classifies its operations into three product categories: Seasoning and processed foods, frozen foods and Umami seasonings and sweeteners for processed food manufacturers.

Offerings include Aji-Mayo Mayonnaise in Vietnam, Crispy Fry frying batter in the Phillippines, VONO Chef soup in Brazil, Masako flavor seasoning products in Indonesia and Birdy coffee beverages in Thailand.

Performance

Reported revenue of JPY4,77,674 million for FY2020, which decreased 0.8% YoY, and recorded a CAGR of 1.4% during 2018-20. The segment accounted for 43.4% of the company's revenue in FY2020. It reported operating profit of JPY48,854 million in FY2020, which grew 15.5% YoY.

Overview

Consists of seasoning and processed foods, frozen foods and beverages. It also offers an array of coffee products through Ajinomoto General Foods.

The segment classifies its operations into three product categories: Coffee, Seasoning and processed foods and Frozen foods

Seasoning and processed food categories products include AJI-NO-MOTO, HON-DASHI, Cook Do and Knorr Cup Soup.

Coffee products are offered under Blendy brand.

Performance

Reported revenue of JPY3,75,312 million for FY2020, which grew 0.1% YoY, and recorded negative growth of 1.2% during 2018-20. The segment accounted for 34.1% of the company's revenue in FY2020. It reported operating profit of JPY32,854 million in FY2020, which grew 9.9% YoY.

Overview

Consists of animal nutrition and specialty chemicals. Offers feed use amino acids such as lysine, threonine and tryptophan and specialty chemicals. Also offers an array of electronic materials for servers and special-purpose ICs.

The segment classifies its operations into three product categories: Animal nutrition, Specialty chemicals and other.

Performance

Reported revenue of JPY95,308 million for FY2020, which decreased 11.7% YoY, and recorded negative growth of 10.3% during 2018-20. The segment accounted for 8.7% of the company's revenue in FY2020. It reported operating profit of JPY7,149 million in FY2020, which decreased 25.4% YoY.

Overview

Generates revenue from the packaging business, business tie-ups, the logistics business and other service business.

Performance

Reported revenue of JPY15,389 million for FY2020, which grew 7.7% YoY. The segment accounted for 1.4% of the company's revenue in FY2020. It reported operating loss of JPY1,986 million in FY2020.

Geographical Segments
Performance

Reported revenue of JPY239,508.0 million for FY2019, which grew 0.2% YoY, and recorded a CAGR of 8.1% during 2015-19. Americas accounted for 21.2% of the company's revenue in FY2019.

Inventore veritatis
Performance

Reported revenue of JPY284,760.0 million for FY2019, which grew 3.9% YoY, and recorded a CAGR of 2.3% during 2015-19. Asia accounted for 25.3% of the company's revenue in FY2019.

Performance

Reported revenue of JPY118,392.0 million for FY2019, which grew 3.1% YoY, and recorded a CAGR of 1.8% during 2015-19. Europe accounted for 10.5% of the company's revenue in FY2019.

Performance

Reported revenue of JPY484,820.0 million for FY2019, which decreased 0.4% YoY, and recorded CAGR growth of 1.3% during 2015-19. Japan accounted for 43.0% of the company's revenue in FY2019.