Seasonings company Ajinomoto Co. is considering acquisitions and plans to boost its pharmaceutical business to improve profitability.

The company, which said last year it may spend ¥300 billion on deals, will evaluate purchases in areas such as seasonings and will consider developing new medicines or buying rights for drugs under development, President Masatoshi Ito said in an interview July 3 in Tokyo.

Ajinomoto, which projected an operating profit of ¥87 billion in the year ending March 31, 2014, may find reaching the target "a little difficult" because of weaker earnings at its pharmaceuticals business and some overseas seasonings operations, Ito said.

The company, which began selling the food flavoring known as MSG more than a century ago, may need to look beyond "organic growth," he said.

"I won't do M&A just to meet the target, but I want to do it when there is a chance," Ito said. "We have said ¥300 billion, so we would like to do it within that range."

The company, which has posted an increase in net income margin in the past two financial years, aims to boost profitability, Ito said. Ajinomoto has made at least 10 acquisitions or formed joint ventures in Japan and overseas in the past decade.

Shares of Ajinomoto have risen 16 percent this year, compared with a 5.9 percent advance in the Topix.

Ajinomoto bought Amoy Food Ltd., a maker of Chinese soy sauce, from Danone in 2006, and New Season Foods Inc., an Oregon-based supplier of ingredients for instant soup, in 2007.

The company seeks to invest or collaborate with businesses that will help it improve the texture and flavor of its seasonings, Ito said. It gets about 34 percent of total sales from outside Japan, according to Bloomberg data.

"It will be important for Ajinomoto to strengthen overseas consumer food business," said Hiroshi Saji, an analyst at Mizuho Securities Co., who recommends buying the shares. "If it can buy some seasonings brand, it will be the best."

Domestic food production, which includes seasonings and frozen foods, accounted for 37 percent of its ¥1.2 trillion of sales last business year. Overseas food contributed 19 percent.

Ajinomoto agreed in May to sell its milk drink maker Calpis to Asahi Group Holdings Ltd. for about ¥120 billion. The funds will be invested for growth, Ajinomoto has said without giving details.

Net income will probably rise 14 percent to ¥47.7 billion this business year ending March 31, according to the average of 13 analysts' estimates. That's slower than the 37 percent growth in profit in the last fiscal year.

Earnings in Ajinomoto's pharmaceuticals business declined 18 percent to ¥6.4 billion in the year that ended March 31, according to the company. Profit in that business, which accounts for about 9 percent of the company's operating income, has declined since the year that ended in March 2007.

The company plans to announce more measures to boost earnings from the pharmaceuticals business around November, Ito said. The details of that revival plan haven't been firmed up and will probably include more frequent acquisitions of drugs being developed by other companies, he said.