Segment Overview
Net Sales ¥190,525million (decreased 1.2%)
Operating Income ¥8,572million (decreased 3.1%)
In fiscal 2010, ended March 31, 2010, the Takara Group posted net sales of ¥190,525 million, a 0.5% decrease compared with the previous fiscal year, while operating income fell 3.1% compared with the previous fiscal year, to ¥8,572 million.
Group operations are divided into four business segments: Alcoholic Beverages and Seasonings, Biomedical, Transportation and Other. The Alcoholic Beverages and Seasonings segment accounted for 82.8% of net sales in the fiscal year, underpinning total operations of the Takara Group. Although the combined sales of the Biomedical, Transportation and Other segments accounted for only 17.2% of Takara Group net sales, the biomedical and health foods businesses are playing a crucial role as the drivers of future Group growth.
Alcoholic Beverages and Seasonings Segment
FY2009 Net Sales 159,386 / Operating Income 8,481
FY2008 Net Sales 156,780 / Operating Income 8,187 (Millions of Yen)
Main Products ：
• Shochu • Sake • Light-alcohol refreshers
• Hon Mirin (a sake-based seasoning) • Food seasonings
• Raw alcohol • Others
In fiscal 2010, ended March 31, 2010, the Alcoholic Beverages and Seasonings segment posted net sales amounting to ¥157,755 million, a 1.0% decrease compared with the previous fiscal year. This segment accounted for 82.8% of net sales of the Group.
Factors such as erosion in consumer confidence owing to the economic slump and a lackluster restaurant and bar market contributed to extremely harsh market conditions. Against this backdrop, the segment achieved robust performances from such high-quality brands as Ikkomon 100% sweet-potato-based shochu and mid-range products, such as Gokujo Takara Shochu and Takara Shochu High Ball that respond to consumer demand for low-priced products. However, owing to such factors as sales declines for honkaku shochu Yokaichi and premium-quality wines and decreased sales at overseas subsidiaries driven by the appreciation of the yen, sales for the segment as a whole were lower than the previous fiscal year.
Operating income for the segment decreased 2.9% compared with the previous fiscal year, to ¥8,232 million. Although there was an improvement in the cost of sales ratio owing to stable raw materials prices and the implementation of cost-reduction measures, a change in the composition of the segment’s product lineup led to an increase in sales promotion expenses and consequently a fall in operating income.
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Biomedical Segment
FY2010 Net Sales 18,900 / Operating Income 564
FY2009 Net Sales 18,402 / Operating Income 437
FY2008 Net Sales 19,793 / Operating Income 570 (Millions of Yen)
Main Products ：
• Research reagents • Scientific instruments • Contract research services
• Gene transduction products • Mushrooms • AgriBio • Others
In fiscal 2010, net sales in the Biomedical segment totaled ¥18,900 million, an increase of 2.7% compared with the previous fiscal year. This segment accounted for 9.9% of net sales of the Group.
In Genetic engineering research, although sales of mainstay research reagents declined owing to the impact of a stronger Japanese yen, this decrease was offset by several positive factors for the Biomedical segment. These included an increase in sales of scientific instruments, higher sales of technical support services relating to cancer immunotherapy in Gene medicine and growth in sales of mushroom products in AgriBio.
Operating income for the Biomedical segment increased 28.9% compared with the previous fiscal year, to ¥564 million. This rise reflected such factors as higher gross profit accompanying the increase in net sales and lower selling, general and administrative (SG&A) expenses owing to a fall in sales promotion expenses.
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Transportation Segment
FY2010 Net Sales 8,218 / Operating Income 384
FY2009 Net Sales 8,779 / Operating Income 482
FY2008 Net Sales 8,762 / Operating Income 448 (Millions of Yen)
Main Products ：
• Cargo forwarding • Warehousing • Distribution processing
In fiscal 2010, the Transportation segment recorded net sales of ¥8,218 million, a decrease of 6.4% compared with the previous fiscal year. This segment accounted for 4.3% of net sales of the Group.
As the general logistics agent for Takara Shuzo Co., Ltd., the segment strove to reduce costs by bolstering the efficiency of its operations and also focused on expanding sales to non-Group customers, including through the development of new business relating to logistics for mail order and sales promotion operations. However, sales for the segment fell owing to the impact of the economic recession and intensified price competition with other industry participants.
Operating income for the segment declined 20.4% compared with the previous fiscal year, to ¥384 million. This decrease reflected lower gross profit accompanying the decrease in net sales and an increase in SG&A expenses.
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Other Segment
FY2010 Net Sales 5,650 / Operating Income 162
FY2009 Net Sales 6,222 / Operating Income 117
FY2008 Net Sales 6,540 / Operating Income 23 (Millions of Yen)
Main Products ：
• Labels • Posters • Cardboard cases • Sales promotion supplies
• Real estate leasing • Health foods • Others
In fiscal 2010, net sales in the Other segment decreased 9.2% compared with the previous fiscal year, to ¥5,650 million. This segment accounted for 3.0% of net sales of the Group.
Operations in this segment include health food products, printing and real estate leasing. Although sales in the health food business increased centering on kombu (kelp) “fucoidan” products, overall segment sales declined owing to a significant decrease in sales in the printing business.
Operating income in the Other segment increased 37.7% compared with the previous fiscal year, to ¥162 million. This principally reflected a decrease in operating loss in the health foods business.
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