Overview of Financial Results for the Six Months Ended September 30, 2023

Mutsumi Kimura
President of Takara Holdings Inc.
Mutsumi Kimura
President of Takara Holdings Inc.


    In the six months ended September 30, 2023, Takara Shuzo posted a decrease in net sales, reflecting the impact of last-minute demand prior to last October’s price revisions of the corresponding period of the previous year. Takara Shuzo International Group saw strong performances in both the Overseas Alcoholic Beverages Business and Japanese Food Wholesale Business, and with the addition of the results of companies that have newly joined the Group, as well as the contribution of the weak yen, it reported an increase in net sales. Net sales were down for the Takara Bio Group, mainly because of a decline in sales of testing-related reagents caused by the change in the legal categorization of COVID-19. As a result, overall net sales of the Takara Group decreased to ¥163,172 million (down 0.7% year on year).

    In terms of profit, Takara Shuzo saw an increase in profit, primarily as a result of an increase in gross profit from the effect of price revisions, and the Takara Shuzo International Group posted an increase in profit thanks to its continued strong net sales, enabling it to offset sharp rises in personnel expenses. However, the Takara Bio Group reported a decrease in profit due to a fall in gross profit caused by the decline in net sales and increases in R&D expenses and other SG&A expenses. Consequently, the results for the Group as a whole were operating income of ¥12,464 million (down 36.5% year on year), ordinary income of ¥13,032 million (down 34.7% year on year), and net income attributable to owners of the parent of ¥8,043 million.

Full-Year Results Forecasts and Shareholder Returns for the Fiscal Year Ending March 31, 2024

   With regard to the outlook for each segment for the full year ending March 31, 2024, we expect net sales for Takara Shuzo to decrease due to declines in sales of shochu and sake, despite an increase in sales of light-alcohol refreshers. However, we expect operating income to increase, as the benefits of price revisions and other factors offset increases in advertising expenses and sales promotion expenses for brand development.
   As for the Takara Shuzo International Group, despite an ongoing slowdown in consumption in response to inflation, we expect both net sales and profit to increase as the global spread of Japanese food results in year-on-year increases in both the Overseas Alcoholic Beverages Business and Japanese Food Wholesale Business.
   Regarding the Takara Bio Group, we expect a decrease in net sales and profit owing to a slump in the global life sciences R&D market due to a decline in sales of testing-related reagents for COVID-19, prolonged inflation, and an economic downturn, as well as increased price competition for products and services.
   As a result of the above, with both net sales and operating income in the Takara Bio Group expected to fall short of our initial targets, we have revised our full-year consolidated results forecasts for the entire Group to net sales of ¥341,000 million (down 2.8% year on year), operating income of ¥21,700 million (down 42.8% year on year), and ordinary income of ¥22,500 million (down 41.9% year on year). We have not made any changes to our previous forecast for net income attributable to owners of the parent of ¥15,000 million (down 29.3% year on year), as extraordinary income will be recorded due to sales of cross-shareholdings. Although the harsh business environment is expected to continue, we will strive to ensure that the individual businesses are able to achieve the targets announced here.
   For dividends, with a target payout ratio of 35%, we are aiming for dividends of ¥27 per share, which is unchanged from our initial target, in accordance with a policy of conducting appropriate shareholder returns commensurate with profit levels.
   Further, to execute flexible capital policy in line with shareholder returns and the business environment, we announced that we would purchase treasury stocks with a limit of 3.00 million shares and ¥3.0 billion, after which the purchased treasury stocks will be cancelled.

Toward the Enhancement of Corporate Value

   The Takara Group has declared “Smiles in Life ~ Smiles are Life’s Treasures ~” as its Vision (Where the Takara Group wants to be) for its long-term management vision “TaKaRa Group Challenge for the 100th.” “Smiles in Life” is the most important phrase for the Takara Group, and we define smiles as an important and irreplaceable part of life. We will strive to realize the Takara Group’s Vision and increase our corporate value by delivering a well-balanced diet to people around the world through Japanese alcoholic beverages and Japanese food, while also contributing to people’s healthy lifestyles.

   I would like to ask our shareholders for their continued warm support for the Group.


December 2023

Mutsumi Kimura

Representative Director and President

Takara Holdings Inc