KUALA LUMPUR: Rising raw material costs will continue to impact food and seasoning manufacturer Ajinomoto (M) Bhd
, but it is still optimistic of maintaining its financial performance in the second half of financial year 2017 (FY17).
Its new managing director/chief executive officer Naoko Yamamoto said its performance will be driven by strong sales from its consumer to business segment, which has seen growth over the years supported by product diversification efforts and pricing strategy.
“However, the strengthening of US dollar against the ringgit will impact the company as we import raw materials and this will also affect our packaging costs.
“We expect raw material prices to continue to trend upwards,” said Yamamoto said at a briefing on the group’s first half results yesterday.
At present, Ajinomoto's global market share stood at about 25%, with the remaining sales conquered by Malaysia. Saudi Arabia remained a key export market for Ajinomoto, followed by the United-Arab Emirates and Oman, among other markets in the Middle-East.
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