Segment Overview

In the fiscal year 2026, ended March 31, 2026, net sales increased 8.7% year on year to ¥394,316 million, operating income decreased 17.1% year on year to ¥17,076 million.

　Takara Shuzo sought to improve profit margins by acquiring new customers and increasing the sales composition ratio of its key brands through advertising campaigns centered on Sho Chiku Bai Shirakabegura MIO and Takara Shochu Highball, as well as through renewing Takara Karakuchi Zero Ball and launching new flavors for the growing non-alcoholic market. We also focused on strengthening our high-profit margin food seasonings (dashi), targeting the expanding ready-to-eat meals market. 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 and Sho Chiku Bai Subaru increased, resulting in a rise in overall sales. In light-alcohol refreshers, sales of Takara Shochu Highball continued to increase, resulting in a rise in overall sales. In seasonings, sales increased due to an increase in sales of Hon Mirin and cooking sake, as well as an increase in sales of food seasonings. In raw alcohol, etc., sales decreased.

　As a result, net sales for Takara Shuzo decreased 0.5% year on year to ¥119,122 million. Cost of sales decreased 0.9% year on year to ¥88,948 million, and gross profit increased 0.9% year on year to ¥30,174 million. As SG&A expenses decreased 1.8% year on year to ¥24,445 million due to decreases in advertising expenses, sales promotion expenses, etc., operating income increased 13.7% year on year to ¥5,729 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 shown below.

　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 the Washu increased as a result of efforts to foster products exclusively for overseas markets and to develop new products that capture local needs.

　In the Japanese Food Wholesale Business in overseas markets, we advanced the development and expansion of warehouse and logistics functions and business bases, primarily in the U.S. and Europe. 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, differentiated products such as the Washu and 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 19.4% year on year to ¥221,888 million. Cost of sales increased 18.2% year on year to ¥149,075 million, and gross profit increased 22.0% year on year to ¥72,812 million. SG&A expenses were up 22.0% year on year to ¥58,610 million, primarily due to an increase in personnel expenses and transportation costs, and operating income was up 21.8% year on year to ¥14,201 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, pharmaceutical companies, testing centers, and other industry customers 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. 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 related to gene therapy, creating new modalities, and advancing new clinical development projects.

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

　As a result, net sales for the Takara Bio Group decreased 10.5% year on year to ¥40,318 million. Cost of sales increased 5.7% year on year to ¥20,057 million primarily due to changes in the sales mix, resulting in a 22.3% decrease in gross profit year on year to ¥20,261 million. SG&A expenses were up 4.8% year on year to ¥24,949 million primarily due to expenses relating to the acquisition of Curio Bioscience, Inc. and the recording of amortization of goodwill related thereto, and operating loss amounted to ¥4,688 million, compared to operating income of ¥2,263 million in the previous fiscal year.