Tokyo, Japan-based seafood company Kyokuyo saw its year-over-year revenue and profits climb in Q1 2024, but China’s ongoing ban of Japanese seafood products is continuing to hit the company’s marine product exports.
In earnings results released on 5 August, Kyokuyo announced it had revenue of JPY 68.2 billion (USD 471 million, EUR 431 million) in Q1 2024, up 9 percent from JPY 62.4 billion (USD 431 million, EUR 394 million) in Q1 2023. The company’s operating profit also increased, jumping 28.1 percent to JPY 3.1 billion (USD 21.4 million, EUR 19.6 million) in Q1 2024, up from JPY 2.4 billion (USD 16.6 million, EUR 15.2 million) in Q1 2023.
Kyokuyo’s quarterly net income attributable to owners of the parent company reached JPY 2.4 billion (USD 16.6 million, EUR 15.2 million), up 32 percent year over year.
Kyokuyo said its marine products segment had positive results in part thanks to strong domestic sales of salmon, shrimp, and crab, which helped boost overall revenue. Kyokuyo attributed the increase to rising seafood prices that drove people to “secure raw materials in anticipation of future price increases.”
“Profits were also strong due to an increase in unit sales prices accompanying the market price rise,” Kyokuyo said in its results.
Its export business, however, continues to take a hit from China’s ongoing ban of seafood from Japan. China initiated a full ban on seafood exported from Japan, citing the controversial release of treated cooling water from the Fukushima Daiichi Nuclear Power Station. Prior to the ban, China was a destination for 42 percent of Japan’s seafood, forcing the country to get creative to find a market for a number of its seafood products.
In its results, Kyokuyo said exports in its marine products segment to overseas markets from Japan benefited from a weak yen, but it wasn’t enough to make up for the Chinese ban “and overall sales decreased.”
Kyokuyo said that its overseas businesses – which aren’t impacted by the seafood ban – benefited from renewed demand for raw material for processing in China. However, “the supply of North Pacific fish and other products did not keep up, resulting in lost sales opportunities.”
Sales also improved in Europe and the U.S., as “stagnant inventory was cleared,” the company said.
Overall, the results were ...
