Ajinomoto to distribute bulk of compensation to shareholders

Ajinomoto attributed its better results to higher domestic sales and better margins from export sales arising from the appreciation in US dollar.

KUALA LUMPUR: Ajinomoto (Malaysia) Bhd will distribute bulk of the RM165.99mil compensation from the government for the compulsory acquisition of its plot of land in Jalan Kuchai Lama to its shareholders.

Ajinomoto managing director and CEO Keiji Kaneko said on Tuesday the remainder would be used for investments over the next five years.

However, no decision had been made as yet on whether to accept the compensation and it had until end-December to decide.

The compulsory acquisition was to make way for an upcoming MRT line and carpark.

“We will finish moving the plant to our main site by end of March next year. The compensation, when accepted, will be used for investments for the next five years, though majority of the money will be distributed back to the shareholders,” said Kaneko.

Ajinomoto has until end of June 2017 to evacuate its plant from the 7.58-acre land down Jalan Kuchai Lama to its main site.

Apart from that, the company expects a double digit growth in its profit for financial year ending March 31, 2017, driven by effective production and appropriate usage of sales and promotional expenses.

For the first half of FY17, Ajinomoto registered revenue and net profit of RM198.02mil and RM24.97mil, an increase of 4.5% and 10% respectively, from a year ago.