Segment Overview

In the fiscal year 2025, ended March 31, 2025, net sales increased 6.9% year on year to ¥362,693 million, operating income decreased 7.4% year on year to ¥20,597 million.

Takara Shuzo focused on uncovering latent consumer needs and developing products with high profit margins that can break new markets that are technologically different to the products of our competitors, including the “TaKaRa HAKKO JORYU SOUR.” We also focused on nurturing products positioned as key brands, including the Sho Chiku Bai Shirakabegura MIO brand. Takara Shuzo has been continuing efforts, including thorough quality management, to ensure the safety and security of its products, as well as remaining committed to Company-wide cost reductions.

The segment’s sales and other information are as shown below.

In shochu, sales decreased due to a decline in sales of large-volume products of ko-type shochu. In sake, sales of such products as Sho Chiku Bai Ten decreased, resulting in a decline in overall sales. In light-alcohol refreshers, although sales of Takara Shochu Highball, which is positioned as a key brand, continued to increase, other products saw a decrease in sales, resulting in a decline in overall sales. In seasonings, sales increased due to an increase in sales of Hon Mirin and an increase in sales of food seasonings. In raw alcohol, etc., sales decreased. 

As a result, net sales for Takara Shuzo decreased 3.3% year on year to ¥119,663 million. Cost of sales decreased 2.5% year on year to ¥89,744 million, and gross profit decreased 5.7% year on year to ¥29,919 million. As SG&A expenses decreased 5.1% year on year to ¥24,881 million due to a decrease in advertising expenses and sales promotion expenses, operating income decreased 8.5% year on year to ¥5,037 million.
 

The Takara Shuzo International Group engages in the Overseas Alcoholic Beverages Business, which entails exports from Japan and the manufacture and sale of alcoholic beverages in overseas locations, and the Japanese Food Wholesale Business in overseas markets, through which it sells Japanese food ingredients to Japanese food restaurants, retailers, etc. outside Japan. 

The segment’s sales and other information are as follows:

In the Overseas Alcoholic Beverages Business, with regard to whiskey, sales of Blanton’s, the premium single-barrel bourbon, remained brisk. Sales of Overseas Alcoholic Beverages Business grew as sales of sake and other Japanese alcohol increased as a result of efforts to foster products exclusively for overseas markets and to develop new products that capture local needs.

The Japanese Food Wholesale Business in overseas markets was engaged in efforts to expand business bases in the U.S. and Europe and in diversification of sales channels. Sales in the Japanese Food Wholesale Business in overseas markets also grew as a result mainly of progress in expanding our lineup of high value-added products such as high-quality seafood products and the contributions of a company newly added to the Group to the Group’s business performance.

As a result, net sales for the Takara Shuzo International Group increased 15.8% year on year to ¥185,803 million. Cost of sales increased 16.0% year on year to ¥126,108 million, and gross profit increased 15.4% year on year to ¥59,694 million. As SG&A expenses increased 21.9% year on year to ¥48,038 million due to an increase in personnel expenses and transportation costs, operating income decreased 5.2% year on year to ¥11,655 million.

The Takara Bio Group is developing and manufacturing reagents/instruments that support research and development activities using biotechnology and providing them to biotech researchers around the world as such activities become increasingly widespread. Furthermore, we are developing CDMO business to support the development and manufacture of regenerative and cellular medicine and gene therapy, which have been actively developed by pharmaceutical companies in recent years. CDMO refers to the business of contracting out the processes of pharmaceuticals from formulation development to manufacturing, and the Takara Bio Group is focusing particularly on the field of gene therapy drugs, etc. In addition, in the gene therapy business, the Takara Bio Group is working to maximize the value of our proprietary platform technology for biologics discovery by manufacturing and selling manufacturing aids for gene therapy products, creating new modalities (therapeutic means), and advancing new clinical development projects. 

Net sales in this segment increased across all reagents, instruments, CDMO and gene therapy categories.

As a result, net sales for the Takara Bio Group increased 3.5% year on year to \45,039 million. Cost of sales increased 14.3% year on year to ¥18,972 million due to reduces sales of testing-related reagents, which have a relatively high profit margin, and changes in the sales mix, resulting in a 3.1% decrease in gross profit year on year to 26,067 million. SG&A expenses were down 0.4% year on year to ¥23,804 million primarily due to decreases in R&D expenses. Operating income decreased 24.6% year on year to ¥2,263 million.