-- Food and materials producer Ajinomoto (TYO:2802) reported strong earnings for fiscal 2026, driven in part by business lines exposed to the semiconductor industry.
Ajinomoto's attributable net profit jumped 92% to 134.7 billion yen, with earnings per share nearly doubling to 138.36 yen from 69.77 yen a year earlier.
Sales for the year rose 3.5% to 1.58 trillion yen.
Though known for its long history in frozen foods and seasonings, Ajinomoto has, in recent years, sold increasing volumes of Ajinomoto Build-up Film (ABF) to semiconductor manufacturers.
The rising number of semiconductors produced globally, along with the increasing complexity of the chips, has resulted in record film sales, according to the company.
The "increase in functionality of semiconductor packages has progressed in line with the expansion of semiconductor applications."
"Accordingly, package boards are increasingly large and multi-layered and the use of ABF is also increasing, with further evolution expected in the future," Ajinomoto said in its earnings presentation.
Ajinomoto has earmarked 1.2 billion yen to build a new ABF factory in Japan's Gifu Prefecture, according to a separate release on Thursday. Construction will begin in 2028, with operations slated to commence in 2032.
Meanwhile, in the fourth quarter alone, Ajinomoto reported a net income of 44.93 billion yen, reversing a 12.17 billion yen loss in the year-earlier period. Quarterly sales rose 10% to 419.5 billion yen.
The company plans to pay a year-end dividend of 24 yen per share for fiscal 2026.
For the upcoming year, Ajinomoto maintains a positive outlook and expects continued growth in core segments. The company expects sales in the 12 months starting April 1 to rise 8.8% year-on-year to 1.72 trillion yen, but expects net profit to fall 10.9% to 120 billion yen, or 126.16 yen per share.
Ajinomoto shares closed up 1.6% in Tokyo trading Thursday.