TOKYO, JAPAN — Marubeni Corp.’s Food & Consumer Products segment reported on May 10 that net profit for the year (April 1, 2015 – March 31, 2016) was 55.848 billion yen ($515,060,074), up 21.3% compared to 46.015 billion yen in the previous year.

The net profit growth was the net effect of non-recurrence of a year-earlier goodwill impairment loss booked by Gavilon and year-earlier valuation gains on consolidation of U.S. grain export facilities.

Despite profit growth in Food & Consumer Products segment, gross trading profit decreased 5.6 billion yen year-on-year to 301 billion yen, largely as a result of deterioration in Gavilon’s earnings environment in the North American grain consolidation business. 

Marubeni purchased Gavilon, a grain processing, storage and merchandising leader in the U.S., in July 2013. 

Marubeni’s total profit before tax for the year was 90.559 billion yen, down 27.3% from 124.614 billion yen in the same period of last year. Profit attributable to the parent for the year was 62.264 billion yen or 35.88 yen per basic and diluted share, down 41% compared to 105.604 billion yen or 60.85 yen per basic and diluted share in the same period of last year. 

Taking a look at the economic climate for the fiscal year ending March 31, 2017, advanced economies will remain on a recovery path, under pinned by robust domestic demand in the U.S., the company said. On the other hand, emerging economies are stagnating, due to the recent slowdown and receding expectations for mid-to long-term of the Chinese economy. 

The global economy is likely to stage a moderate recovery, but the outlook for the Chinese economy and resource price trends, etc., require attention, the company said. Commodity markets are forecast to pick up as a whole, albeit remaining at a low level, as the easing supply and demand balance is expected to start tightening gradually. 

In Japan, personal consumption is expected to increase toward the end of fiscal year, driven by a last-minute jump in demand prior to the planned consumption tax hike, the company said.