KUALA LUMPUR (May 29): Ajinomoto (M) Bhd’s net profit surged 22 times to a record RM148.96 million for its fourth quarter ended March 31, 3017 (4QFY17), from RM6.59 million a year earlier.
 
The jump in net profit was mainly contributed by RM144.49 million in other income, the group said in its filing to Bursa Malaysia today.
 
The group has proposed a first and final dividend of 42 sen per share, as well as a special one-off dividend of RM1.13 per share for FY17.
 
Late last year, the group announced it was accepting an award of RM165.99 million as compensation for the compulsory acquisition of a plot of its land in Jalan Kuchai Lama for the construction of the MRT2 project.

Managing director and chief executive officer Keiji Kaneko had also said the group will distribute a bulk of the amount to its shareholders.

Ajinomoto said its revenue for 4QFY17 rose 4.3% to RM114.93 million, from RM110.24 million in 4QFY16, contributed by improved sales in both its consumer and industrial business segments.

Meanwhile, operating profit rose 60.87% to RM14.8 million, from RM9.2 million, supported by higher revenue and lower advertising expenses. 
 
For FY17 as a whole, the group recorded an increase of 360% in net profit to RM187.46 million, from RM40.79 million in FY16. Revenue was up 4.93% at RM419.92 million, from RM400.20 million.
 
Going forward, the group said it expects to be challenged by stringent government policy on foreign worker recruitment, as well as costs of imported raw materials priced in U.S. dollars, besides competition.
 
Shares in Ajinomoto closed up 6 sen or 3.09% at RM20 today, after touching a record high of RM20.10 earlier in the day. The counter has risen 44.7% year-to-date.