AJI-NO-MOTO (Malaysia) Kicks Off FY2026 with Strong Revenue and Profit Growth!
Greetings, fellow investors and food enthusiasts! Today, we’re diving into the latest financial report from Ajinomoto (Malaysia) Berhad for the first quarter ended 30 June 2025 (Q1 FY2026). This report reveals a robust start to their new financial year, showcasing impressive growth in both revenue and profit, driven by strong performance across its business segments and a strategic focus on key markets.
While the company is navigating a dynamic economic landscape and global trade uncertainties, its results paint a picture of resilience and effective management. Let’s unwrap the key highlights and see what’s stirring in the Ajinomoto kitchen!
Core Data Highlights: A Recipe for Growth
Ajinomoto (Malaysia) has delivered a delicious set of numbers for Q1 FY2026, demonstrating significant improvement compared to the same period last year. Here’s a closer look:
Overall Financial Performance (Q1 FY2026 vs Q1 FY2025)
Current Quarter (30 June 2025)
Revenue: RM180.9 million
Operating Profit: RM29.3 million
Profit Before Tax (PBT): RM31.0 million
Profit for the Period: RM24.2 million
Basic Earnings Per Share: 39.75 sen
Corresponding Quarter (30 June 2024)
Revenue: RM171.4 million
Operating Profit: RM22.0 million
Profit Before Tax (PBT): RM24.3 million
Profit for the Period: RM18.9 million
Basic Earnings Per Share: 31.13 sen
The company’s revenue climbed by a healthy 5.5% to RM180.9 million, while operating profit surged by an impressive 33.2% to RM29.3 million. This substantial profit growth was primarily fueled by higher sales revenue and a favourable reduction in key material costs. Consequently, profit before tax jumped by 27.5% to RM31.0 million, and basic earnings per share followed suit, rising by 27.7% to 39.75 sen.
Business Segment Performance
Both the Consumer and Industrial Business Segments contributed significantly to this positive performance:
Consumer Business Segment (Q1 FY2026)
Revenue: RM136.8 million
Operating Profit: RM21.0 million
Consumer Business Segment (Q1 FY2025)
Revenue: RM130.7 million
Operating Profit: RM16.9 million
The Consumer Business segment saw its revenue increase by 4.6% to RM136.8 million. This growth was largely attributed to stronger sales volume of AJI-NO-MOTO® in the Middle East, highlighting the success of the company’s international market penetration.
Industrial Business Segment (Q1 FY2026)
Revenue: RM44.1 million
Operating Profit: RM8.3 million
Industrial Business Segment (Q1 FY2025)
Revenue: RM40.7 million
Operating Profit: RM5.1 million
Not to be outdone, the Industrial Business segment expanded its revenue by 8.4% to RM44.1 million, driven by higher sales volume of industrial seasoning products.
Geographical Segments: Expanding Horizons
Looking at revenue by geographical location, Ajinomoto (Malaysia) is clearly diversifying its reach:
| Region | Q1 FY2026 (RM’000) | Q1 FY2025 (RM’000) | Change (%) |
|---|---|---|---|
| Malaysia | 92,538 | 93,716 | -1.3% |
| Middle East | 47,571 | 40,870 | +16.4% |
| Other Asian Countries | 37,101 | 33,893 | +9.5% |
| Others | 3,693 | 2,956 | +24.9% |
| Total Revenue | 180,903 | 171,435 | +5.5% |
While domestic revenue in Malaysia saw a slight dip, significant growth was recorded in the Middle East (+16.4%) and Other Asian Countries (+9.5%), underscoring the company’s successful export strategies.
Financial Status: A Healthy Balance Sheet
As of 30 June 2025, the company’s total assets stood at RM995.5 million, a slight increase from RM976.0 million at the end of the previous financial year (31 March 2025). Total equity remained stable at RM820.6 million, translating to a net asset per share of RM13.50. Key current assets include inventories (RM152.1 million), trade receivables (RM70.1 million), and a healthy RM137.4 million in cash and bank balances, reflecting a strong liquidity position.
Cash Flow Insights
The cash flow statement for Q1 FY2026 shows a net cash outflow from operating activities of RM9.5 million, compared to an inflow of RM13.0 million in the corresponding quarter last year. This shift is mainly due to changes in working capital, particularly a net change in current assets amounting to an outflow of RM36.4 million. However, investing activities generated a strong RM73.8 million, largely due to the net redemption of investment securities. Financing activities used minimal cash, primarily for lease liabilities and interest paid, as no dividends were paid in this specific quarter.
Risk and Prospect Analysis: Navigating the Global Flavour Landscape
The global economic climate remains a complex mix of opportunities and challenges, and Ajinomoto (Malaysia) is keenly aware of the currents it must navigate.
Malaysia’s economy is currently performing moderately well, with GDP expanding around 4-4.5%, buoyed by robust consumer spending and improving trade figures. However, the international arena presents hurdles, particularly global trade tensions and the ongoing impact of U.S. tariffs, which pose uncertainties to global supply chains. This volatility has led Bank Negara Malaysia to downgrade its 2025 GDP growth forecast, a clear signal for companies to remain agile.
Domestically, the ongoing subsidy rationalisation is a key factor, expected to moderately raise inflation. The company’s management has affirmed its commitment to closely monitor these economic shifts and implement appropriate actions to mitigate potential risks. This proactive approach is crucial in maintaining profitability amidst rising operational costs and potential shifts in consumer purchasing power.
Looking ahead, the company’s focus on expanding its market share in the Middle East and other Asian countries, coupled with efforts to manage material costs, positions it well to absorb some of these external pressures. Their diverse product portfolio across consumer and industrial segments also offers a degree of resilience.
Summary and Investment Recommendations
Ajinomoto (Malaysia) Berhad has kicked off its new financial year (FY2026) with a commendable performance in Q1, demonstrating strong top-line and bottom-line growth. The strategic focus on driving sales volume, particularly in key export markets like the Middle East, combined with effective cost management, has yielded excellent results.
The announcement of a first and final single-tier dividend of 40.85 sen per ordinary share for the financial year ended 31 March 2025, payable in September 2025, also reflects the company’s commitment to returning value to its shareholders.
However, the journey ahead is not without its considerations. While the company’s performance is strong, the broader economic environment requires careful observation. Here are some key points to keep an eye on:
- Global Trade Tensions: Potential disruptions to supply chains and increased cost of imports/exports due to geopolitical factors and tariffs.
- Inflationary Pressures: The impact of domestic subsidy rationalisation on operating costs and consumer spending power.
- Economic Volatility: The general slowdown in global GDP growth and its potential ripple effects on regional demand.
- Competitive Landscape: The dynamic nature of the food and seasoning industry, requiring continuous innovation and market adaptation.
Overall, Ajinomoto (Malaysia) has shown itself to be a resilient player with a clear strategy. Its ability to grow both its consumer and industrial segments, along with its expanding geographical reach, provides a strong foundation for future performance.
What are your thoughts on Ajinomoto (Malaysia)’s latest quarter? Do you believe their focus on international markets will continue to be a significant growth driver? Share your insights and perspectives in the comments below!
