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2024
ANNUAL REPORT
WHAT'S INSIDE THIS REPORT
02 Corporate Information
03 Management Discussion and Analysis
11 Director's Profile
16 Corporate Governance Overview Statement
31 Additional Compliance Information
- Statement of Directors' Responsibility in Relation to the Financial Statements
- Statement on Risk Management and Internal Control
- Audit Committee Report
- Statistics of Shareholdings
- Financial Highlights
- Financial Statements
94 | List of Properties | ||
95 | Notice of Annual General Meeting | ||
100 | Sustainability Statement | Scan this to view our | |
- | Form of Proxy | ||
Annual Report online. | |||
AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
CORPORATE INFORMATION
BOARD OF DIRECTORS
Tan Sri Dato' (Dr.) Teo Chiang Liang (Chairman)
Cheong Heng Choy
Tomoharu Abe
(Managing Director / Chief Executive Officer) (resigned w.e.f. 30 June 2023)
Riichiro Osawa
(Managing Director / Chief Executive Officer) (appointed w.e.f. 1 July 2023)
Shunsuke Sasaki
(Chief Finance Officer)
Dominic Aw Kian-Wee (resigned w.e.f. 31 May 2023)
Azhan bin Mohamed
(retired w.e.f. 29 February 2024) Norani Binti Sulaiman
Noriko Fujimoto
Takahiro Sato
(resigned w.e.f. 31 May 2023) Elaine Tan Ai Lin
Yong Kum Cheng (appointed w.e.f. 1 April 2023)
BANKERS
MUFG Bank (Malaysia) Berhad
Malayan Banking Berhad
Standard Chartered Bank Malaysia Berhad
AUDITORS
KPMG PLT
SOLICITORS
Lee, Ling & Partners
SECRETARIES
Chua Siew Chuan (MAICSA 0777689)
SSM PC No. 201908002648
Yeow Sze Min (MAICSA 7065735)
SSM PC No. 201908003120
REGISTERED OFFICE
Lot L1-E-5A and L1-E-5B, Enterprise 4,
Technology Park Malaysia,
Lebuhraya Puchong - Sg. Besi,
Bukit Jalil,
57000 Kuala Lumpur, Malaysia
Tel : 603-7980 6958
Fax: 603-7981 1731
Customer Service: https://www.ajinomoto.com.my/customer-service
Company/ Corporate inquiries: corporate@ajikl.com.my
Business/ Product inquiries: customerfeedback@ajikl.com.my
SHARE REGISTRAR
Securities Services (Holdings) Sdn. Bhd. Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara,
Damansara Heights,
50490 Kuala Lumpur
Tel : 603-2084 9000
Fax: 603-2094 9940 / 603-2095 0292
Email: info@sshsb.com.my
STOCK EXCHANGE LISTING
Main Market of the Bursa Malaysia Securities Berhad
02
AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
MANAGEMENT DISCUSSION & ANALYSIS
History & Milestones
Ajinomoto (Malaysia) Berhad ("the Company"), established in 1961, began its journey in Malaysia as a distributor of monosodium glutamate ("MSG") under the renowned AJI-NO-MOTO® brand. By 1965, the Company's business rapid growth led to the commencement of local production of MSG under the AJI-NO-MOTO® brand at its then Kuala Lumpur factory. The Company then implemented its strategy to make available a range of AJI-NO-MOTO® Umami Seasoning and food products to meet the varied needs of consumers, viz households, restaurants and other food service providers, and food manufacturers. These key developments firmly established the Company's reputation as a trusted food manufacturer and distributor in Malaysia.
The Company achieved a new milestone with the commissioning of its state-of-the-art plant in Bandar Enstek in 2022, signifying a paramount commitment to quality and innovation. The new smart and eco-friendly plant marks a significant step in its thrust into global markets for food seasoning products.
• Establishment of Production | |||||||
Commencement of | • Launch of PAL SWEET® | 2 (seasonings and food | |||||
Launch of AJI-EKI™ | Inauguration of | production line) factory | |||||
Establishment | AJI-NO-MOTO® | Sweetener | • Launch of AJIMATE™ Taste | Launch of | |||
(Hydrolysed | Effluent Treatment | ||||||
of Ajinomoto | plant operation | • Launch of Hydrolysed | Enhancing Seasoning | Seri-Aji® Menu | |||
(Malaya) | Awarded HALAL | Vegetable Protein | Management | Vegetable Protein (HVP) | • Awarded AJI-NO-MOTO® | Launch of Slim Up™ | |
Liquid) | (SALAM) | Specific | |||||
Co., Ltd | Certification | Powder | Product Certification | Seasoning | Sweetener | ||
1961 | 1965 | 1971 | 1982 | 1989 | 1993 | 1996 | 2000 |
1963 | 1968 | 1978 | 1988 | 1992 | 1994 | 1998 |
Corporate name | Company name | Launch of AJI-SHIO® | Launch of | Launch of | Launch of | Awarded |
was changed to | was changed to | Table Topping | AJI-PLUS™ | AJI-AROMA™ | AJI.MIX™ | ISO 9001 |
Ajinomoto | Ajinomoto | Seasoning | Blended Flavour | Flavour Enhancing | Blended | Certification |
(Malaysia) | (Malaysia) Berhad | Enhancer | Seasoning | Seasoning | ||
Sdn Bhd | as the public | |||||
company |
2017 | 2014 | 2012 | 2011 | 2010 | 2008 | 2006 | 2005 | 2004 | 2003 | |
Hydrolysed | Establishment | Establishment | 50th | Launch of | Awarded | Awarded | • | Launch of | Awarded | Launch of |
Vegetable | of ASEAN | of Chicken | Anniversary | AJINOMOTO® | OSHAS 18001 | ISO 14001 | VONO® | HACCP | ||
TUMIX® Stock | ||||||||||
Protein (HVP) | Application | Meat | of Ajinomoto | Chicken Stock | Certification | Certification | Instant Soup | Certification | ||
Seasoning | ||||||||||
process | Centre | Powder Plant | (Malaysia) | • | Launch of | |||||
improvement | Berhad | ACTIVA™ TG | ||||||||
Series |
2019 | 2020 | 2021 | 2022 | 2023 |
• Launch of | • Launch of | • Launch of Seri-Aji® | Establishment of new | • Launch of Seri-Aji® Curry Fried Rice Seasoning |
Rasa Sifu™ | aminoVITAL® | |||
Fritter Seasoned | plant at Bandar Enstek, | and Seri-Aji® Chicken Soup Seasoning Powder | ||
All in One | Jellly Flavoured | |||
Flour | Negeri Sembilan, as a | Launch of Ajinomoto Chicken Gyoza | ||
Seasoning | Drink with | |||
• Launch of Seri-Aji® | 'Global | Launch of AJIRISE™ K and AJIRISE™ UM | ||
Amino Acids | ||||
Banana Fritter Flour | Customer-Centric Halal | |||
Food Company' |
03
AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
Management Discussion & Analysis (cont'd.)
Our Policy
CERTIFIED TO MS1500:2019 | CERTIFIED TO ISO 9001:2015 | CERTIFIED TO ISO 14001:2015 | CERTIFIED TO ISO 45001:2018 | CERTIFIED TO MS 1480:2019 | CERTIFIED TO ISO 22000:2018, ISO/ |
REF. NO.: 1092-02/2004 | CERT. NO.: QMS 00504 | CERT. NO.: EMS 00368 | CERT. NO.: OHS 00302 | CERT. NO.: HA0122031-0/8 | TS22002-1:2009 and Additional |
Malaysian Standard on Halal | CERT. NO.: QMS 00504-S1 | CERT. NO.: EMS 00368-S1 | CERT. NO.: OHS 00302-S1 | Food Safety according to | FSSC 22000 requirements |
Food General Requirements | Quality Management | Environmental Management | Occupational Health and | Hazard Analysis and Critical | CERT. NO.: MY24/00000044 |
Systems ("QMS") | Systems ("EMS") | Safety Management Systems | Control Points System | Food Safety System Certification | |
("OHS") | ("HACCP") | FSSC 22000 |
The Company is steadfast in its vision of becoming a global customer-centric halal food company operating under food manufacturer compliance standards and adhering to all relevant international and local laws and regulations. It is committed to enhance people's well-being through its Specialties and Innovative Solutions, in order to uphold the Ajinomoto Group's corporate slogan, "Eat Well, Live Well". Being a responsible corporate citizen, the Company is actively implementing strategies to meet Environmental, Social, and Governance (ESG) requirements and standards in its business plans and policies. As a responsible employer, policies are regularly reviewed and shared with employees to uphold its ongoing commitment to be an employer of choice.
In March 2024, the Company achieved FSSC22000 certification in respect of its compliance to manufacturing processes and food safety management systems, including hazard analysis, risk assessment, and stringent operational controls across its entire production and supply chain. This significant accomplishment reflects its commitment to the highest standards of food safety and quality in operations.
Our Product Range
Consumer Products
The Company continued its dedication to develop products that cater to a diverse range of consumer needs. Its extensive range of seasoning and food products, including chicken stock, menu seasoning, pepper, sweetener, and jelly drink with amino acids, showcases its commitment to offer a variety of quality food products.
In 2023, the Company introduced two new variants of Seri Aji seasoning: Seri-Aji® Curry Fried Rice and Chicken Soup Seasoning Powder, offering delicious, simple and convenient cooking solutions for household meals. Additionally, the Company expanded its product line with "Ajinomoto" Chicken Gyoza, bringing the taste of authentic Japanese cuisine to consumer as well as food service markets. These new additions highlight the Company's commitment to deliver products meeting diverse consumers' needs.
The Company's range of products are distributed across Malaysia through direct sales forces and distributors, retailers, wholesalers and e-commerce channels and agents in overseas markets. Furthermore, the Company's marketing efforts include social media and digital platforms, effectively reaching consumers of food seasoning and food products. Using such platforms facilitates continuous improvement in interactions with the market and consumers to better understand and respond to their needs.
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AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
Management Discussion & Analysis (cont'd.)
Industrial and Food Service Products
In addition to its consumer product line, the Company also offers a comprehensive range of industrial products for the food manufacturing and food service industries. The product portfolio spans diverse categories, including taste and flavour-enhancing products, binders, and texture improvers. They are marketed under the brand names AJIMATE®, AJI- AROMA® (referred to as "TENCHO" product category) and ACTIVA®, and are widely utilized in various processed foods, such as instant noodles, soups, snacks, sauces, dairy products, processed meats, and processed seafood.
With a robust global presence, the Company serves a diverse clientele across Asia, Central and South America, Middle East, Oceania and Africa. Leveraging multiple distribution and export channels, the Company efficiently distributes and exports its products, meeting the needs of food service and industrial clients both locally and internationally.
As the Company continues to address the growing demand for simple-to-use seasoning and texture solutions, the Company in 2023 introduced AJIRISE™ - a series of yeast extract products which help to enhance original flavours and also adds a savoury touch. Alongside that, it also launched two additional products: AJIezi™ Rice Fresher, employing advanced texture control to extend steamed rice freshness; and AJIezi™ Meat Juicy Up, improving meat juiciness while maintaining texture integrity for consistently delicious results.
M-2000
1kg
M-CHICKEN FB
1kg
M-SUPER P
1kg
M-SUPER KMI
1kg
TG-SR-MH
1kg
TG-BW-MH
1kg
The Company remains committed to both product innovation and customer service. By promoting the effective use of our innovative solutions throughout the food industry, we aim to continuously meet the evolving needs of our diverse clientele.
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AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
Management Discussion & Analysis (cont'd.)
Sales Branches and Overseas Markets
ALOR SETAR, KEDAH | AJINOMOTO SALES BRANCHES |
in Malaysia & Middle East KOTA KINABALU, SABAH | |
PENANG |
IPOH, PERAK
KUANTAN, PAHANG
KUALA LUMPUR
BANDAR ENSTEK,
NEGERI SEMBILAN MELAKA KUCHING, SARAWAK
BATU PAHAT, JOHOR
JOHOR BAHRU, JOHOR
JEDDAH | SALES BRANCHES | HEAD OFFICE | NEW FACTORY |
CAWANGAN-CAWANGAN JUALAN | PEJABAT UTAMA | KILANG BAHARU |
ASIA | ||
ASIA | ||
CENTRAL AMERICA | MIDDLE EAST | |
TIMUR TENGAH | ||
AMERIKA TENGAH | ||
SOUTH AMERICA | ||
AMERIKA SELATAN | ||
AFRICA | OCEANIA | |
OCEANIA | ||
AFRIKA |
OVERSEAS MARKETS
(Countries where we export our products to)
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AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
Management Discussion & Analysis (cont'd.)
FINANCIAL RESULTS
Snapshot
Financial Year Ended 31 March 2024 Highlights
REVENUE
RM636.4MIL
PROFIT
BEFORE TAX
RM452.6MIL
EARNINGS
PER SHARE
660.25SEN
RETURN
ON EQUITY
43.44%
TOTAL
ASSETS
RM1092.8MIL
SPECIAL ORDINARY
DIVIDENDS
PER SHARE
(DECLARED)
212.00SEN
ORDINARY
DIVIDENDS
PER SHARE
(DECLARED)
38.40SEN
07
AJINOMOTO (MALAYSIA) BERHAD 196101000252 (4295-W)
Annual Report 2024
Management Discussion & Analysis (cont'd.)
NET SALES | Business | NET SALES BY | RM9.7 | |
BY BUSINESS | GEOGRAPHICAL | |||
Industrial | Others | |||
(RM MILLION) | RM152.2 | AREA | Other Asian | |
(RM MILLION) | Countries | |||
RM129.5 |
Middle East | |
Consumer | RM135.5 |
Business | Malaysia |
RM484.2 | |
RM361.8 | |
Operating Environment
The Malaysian economy grew moderately in 2023 amid a challenging external environment due to weak exports, geopolitical tensions and tighter monetary policies. Bank Negara projected our economic growth to improve in year 2024 mainly driven by continuous domestic demand expansion and improvement in external demand. There are downside risks to growth arising from weaker-than-expected external demand, escalation of geopolitical conflicts and lower production of commodity due to adverse weather conditions which could impact the cost of our raw materials and energy.
Financial Review
In the financial year ended 31 March 2024 ("FYE 31.03.2024"), the Company achieved a revenue of RM636.4 million, increased by 5.4% as compared to the revenue of previous financial year of RM603.7 million. Sales volume in the current financial year decreased mainly from AJI-NO-MOTO® against the sales volume in the previous financial year. However, this reduction was compensated by the increase in prices of AJI-NO-MOTO® AND "TENCHO". Both better revenue and lower key material cost of AJI-NO-MOTO® contributed to a strong profit from our business operations. In addition, the gain on disposal of assets held for sale including the lands and property, plant and equipment located in Jalan Kuchai Lama, Kuala Lumpur of RM394.2 million increased the Company's profit before tax to RM452.6 million.
SEGMENT INFORMATION
Consumer Business
Revenue in Consumer Business was RM484.2 million as compared to the revenue of RM462.1 million in the previous financial year. Consumer business recorded lower sales volume from AJI-NO-MOTO® mainly in the export market. The decrease in the AJI-NO-MOTO® export sales was due to the demand fluctuation arising from the geopolitical issue. The sales volume of TUMIX®, AJI-SHIO®, aminoVITAL® and "Ajinomoto" Chicken Gyoza had shown positive expansion. Despite lower sales volume, the revenue in the Consumer Business improved due to better selling price of AJI-NO-MOTO® and foreign exchange gain from export sales. Profit was 43.9 million, 13.3 times of the profit of RM3.3 million in the previous financial year. The main contributors were higher revenue, lower cost of key material AJI-NO-MOTO® and staff costs.
Industrial Business
Revenue from Industrial Business increased by 7.4% at RM152.2 million as compared to the previous financial year's revenue of RM141.7 million. The rise in revenue was attributed to higher selling price of "TENCHO" and foreign exchange gain from export sales with the sustained sales volume. However, the increase in revenue was eroded by higher costs of raw materials and factory overheads including depreciation. As a result, profit was RM15.5 million against the previous financial year's profit of RM15.1 million.
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