Snow Brand Milk Products Co. said Wednesday its sales in July declined 76.7 percent from the same month a year earlier to 11.1 billion yen, hit by massive food poisoning blamed on its goods.
Snow Brand said earnings were hit by the temporary halt of operations at its 21 plants and the large-scale return of products in July, when its products usually sell well due to the summer weather.
Sales of milk fell 84 percent in July from a year earlier to 3.9 billion yen, while sales of other dairy products decreased 75.3 percent to 3.2 billion yen, the company said.
Snow Brand incurred 10.8 billion yen in pretax losses in April though July as a result of product recalls and the cost of compensating dealers and food-poisoning victims, compared with a profit of 3.6 billion yen in the same period the year before, according to the company.
At least 14,700 people in 15 prefectures, mostly in western Japan, reported falling ill after consuming milk and dairy products made by Snow Brand. The food poisoning caused the company to suspend factory operations in July.