KUALA LUMPUR (Aug 23): Ajinomoto (Malaysia) Bhd reported a 42% year-on-year jump in net profit to RM11.17 million during its first quarter ended June 30, 2018 (1QFY19) from RM7.88 million, mainly because it incurred lower advertising and sales promotion expenses in its consumer business segment.

This improved its quarterly earnings per share to 18.37 sen from 12.96 sen. Revenue was a marginal 1% lower at RM95.23 million versus RM96.42 million in the corresponding quarter last year.

The food and seasoning manufacturer said in its exchange filing today it recorded reduced revenue in its industrial business segment in 1QFY19, due to lower export sales volume and a weaker US dollar against the ringgit during the quarter under review.

Its consumer business segment, meanwhile, remained resilient, with improved sales volume and revenue.

Moving forward, Ajinomoto expects operating expenses to increase with the reintroduction of the new sales and services tax come Sept 1.

"In addition, the uncertainties and foreign currency fluctuations arising from the external trade tension may impact costs of raw material imports, which can adversely affect the company's production costs," it cautioned.

It said its board will continue to review or implement appropriate marketing and sales strategies, and improve production efficiency to grow the company's sales and profit.

Shares in Ajinomoto closed 18 sen or 0.83% up at RM21.88 today, for a market capitalisation of RM1.33 billion.