Segment Overview

In the fiscal year ended March 31, 2023, net sales increased 16.5% year on year to ¥350,665 million gross profit increased 5.6% year on year to ¥119,941 million, and Operating income decreased 12.5% year on year to ¥37,945 million. 

Main Products ：

• Shochu
• Sake
• Light-alcohol refreshers
• Hon Mirin (a sake-based seasoning)
• Food seasonings
• Raw alcohol
• Others

 

Takara Shuzo gave the highest priority to supplying safe and secure products as a food manufacturer and focused on improving the product mix by developing new products with differentiation points that are supported by consumers and by nurturing high-profit products. In response to soaring raw material and energy prices, Takara Shuzo has committed to thorough cost reductions and efficiency improvement, as well as maintaining and improving profit margins by revising product prices.

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 and 35% ABV shochu. In sake, although sales of Sho Chiku Bai Gokai increased amid a recovery in the eating and drinking establishment market, sales of such products as Sho Chiku Bai Ten for household-use decreased, resulting in a decline in overall sales. In light-alcohol refreshers, sales grew as sales of Takara Shochu Highball, which is positioned as a core brand, continued to increase, and the launch of Takara Dry Zero Ball also contributed. In seasonings, sales increased due to an increase in sales of Hon Mirin, food seasonings and other seasonings. In raw alcohol, etc., sales also increased. 

 

As a result, net sales for Takara Shuzo increased 2.7% year on year to ¥122,921 million. Cost of sales increased 3.0% year on year ¥93,645 million, and gross profit increased 1.6% year on year to ¥29,276 million. As SG&A expenses decreased 1.2% year on year to ¥24,385, affected mainly by decreases in personnel expenses and transportation costs due to more efficient transfer between workplaces, operating income increased 18.3% year on year to ¥4,890 million.
 

Main Products ：

• Overseas Alcoholic Beverages Business
• Japanese Food Wholesale Business in overseas markets

 

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:

 

Overseas Alcoholic Beverages Business
Sales of Blanton’s, the premium single-barrel bourbon, remained brisk, while those of Tomatin Scotch whisky also grew. Sales of sake and other Japanese alcoholic beverages declined in China as they were greatly affected by the COVID-19 crisis, but sales of those increased in the U.S., where the market is large. As a result, net sales of the Overseas Alcoholic Beverages Business rose 29.8% year on year to \18,253 million.

 

Japanese Food Wholesale Business in overseas markets 
The Japanese Food Wholesale Business in overseas markets engaged in diversification of sales channels, including retail stores and online sales, and development of product procurement and supply systems that meet customer needs, and there were strong sales in the eating and drinking establishment market in the U.S. and Europe, leading to a net sales increase of 35.2% year on year to \121,354 million. 

 

As a result, net sales for the Takara Shuzo International Group after the elimination of intersegment transactions rose 34.5% year on year to \137,483 million. Cost of sales increased 35.8% year on year to \95,088 million, and gross profit rose 31.9% year on year to \42,394 million. SG&A expenses rose 33.4% year on year to \31,573 million, primarily due to increases in personnel expenses and transportation costs. Accordingly, the Takara Shuzo International Group saw operating income increase 27.7% year on year to \10,821 million.

Main Products ：

• Research reagents
• Scientific instruments
• Contract research services
• Gene transduction products

 

　

The Takara Bio Group is developing 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 contract services 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 on the field of gene therapy. 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 drugs, creating new modalities (therapeutic means), and advancing new clinical development projects. 
In this segment, although sales in the instruments and CDMO businesses decreased, sales in the reagents business increased due to a significant increase in sales of testing-related reagents for COVID-19, including antigen test reagents. Sales in the gene therapy business also increased.

 

As a result, net sales for the Takara Bio Group increased 15.4% year on year to \78,142 million. Cost of sales grew 80.5% year on year to ¥33,377 million mainly due to a change in sales mix, and gross profit decreased 9.0% year on year to ¥44,765 million. SG&A expenses were up 19.3% year on year to ¥24,224 million primarily due to increases in personnel expenses and R&D expenses. Operating income decreased 28.9% year on year to ¥20,541 million.