Overview of financial results for the six months ended September 30, 2017
In the six months ended September 30, 2017, Takara Shuzo, Takara Shuzo International Group, and Takara Bio Group each posted strong results, with contributions from newly consolidated subsidiaries. As a result, we recorded record-breaking net sales of ¥128,855 million, an increase of 19.9% year on year. On the profit front, the increase in gross profit from higher net sales exceeded the increase in SG&A expenses, with operating income coming in at ¥6,128 million, up 17.7% over the same period last year. As for non-operating income and expenses, although non-operating expenses increased from bond issuance and other costs, ordinary income increased to ¥6,200 million, up 10.4% year on year, while net income attributable to owners of the parent increased by 8.5% year on year, to ¥3,447 million. With regard to our corporate plans, we think we have been able to make a strong start with results that have exceeded initial targets for net sales and all of our profit categories.
Given the solid results of the first half of the year, we revised upward our full-year consolidated forecasts. Along with this, we increased our expected year-end per share dividend for the year ending March 31, 2018 by \2 year on year, to \15, which is \1 more than our original plan.
Embarking on the Takara Group Medium-Term Management Plan FY2020
In April, we kicked off efforts under the Takara Group Medium-Term Management Plan FY2020, which is a new three-year plan ending March 31, 2020. This plan is our final step toward realizing the Takara Group Vision 2020, our 10-year long-term management vision established in April 2011.
Under this new plan, the Group's basic policy is to aim to build up a great number of fields in which we can beat competitors and establish a balanced business foundation able to grow revenues significantly no matter what environmental changes occur by further increasing the overseas sales ratio together with having a full product line-up and many products with a competitive edge both in Japan and overseas. Our tangible goals for the plan's final fiscal year are consolidated net sales of ¥290 billion or above, consolidated operating income of ¥15.5 billion or above, and an overseas sales ratio of 33% or above. We will coordinate our efforts as a group to move initiatives forward and achieve these goals.
Further enhancing corporate value
On July 3, 2017, we spun off the overseas business of Takara Shuzo Co., Ltd. and established Takara Shuzo International Co., Ltd. This restructuring gives us three segments: Takara Shuzo (handling our domestic business), Takara Shuzo International Group (handling our overseas business), and Takara Bio Group (handling our biomedical business). Under this new system, it has been decided that I, Toshio Kakimoto, will step down as President of Takara Shuzo Co., Ltd., the position in which I have served for five years since June 2012, and will concentrate exclusively on coordinating and overseeing the Group’s overall management as President of Takara Holdings Inc.
We will continue to steadily promote growth strategies in each business segment for the next three years in order to achieve the Takara Group Vision 2020 and leap forward to the new stage ahead.
I ask our valued shareholders for their continued support and encouragement.
Takara Holdings Inc.