This document has been prepared in accordance with accounting principles and practices generally accepted in Japan, and translated for reference only from the original Japanese version. The Company gives no warranty with respect to its correctness.
The original disclosure in Japanese was released on Oct. 20, 2016
Takara Holdings Inc.
Revision of Consolidated Business Results Forecast for the First Half
of the Fiscal Year Ending March 31, 2017
Kyoto, Japan—Takara Holdings announced revisions to the business results forecast for the first half of the fiscal year ending March 31, 2017 (from April 1, 2016, to March 31, 2017) that it released on May 9, 2016, as stated below. These revisions were based on consideration of recent performance trends.
1. Revised figures for the business results forecast for the first half of the fiscal year ending March 31, 2017 (from April 1, 2016, to September 30, 2016)
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2. Reason for revision
Consolidated net sales are expected to be ¥400 million (0.4%) lower than previous forecasts due to the impact of the decreased net sales at overseas subsidiaries in yen terms of approximately ¥1,700 million as a result of stronger yen compared with the Company projection.
As for income, due to the lowered cost of sales ratio, a decline in SG&A expenses and other factors, operating income is projected to be ¥1,400 million (36.8%) higher than forecasted. Also, ordinary income and net income attributable to owners of the parent are expected to be ¥1,600 million (40.0%) and ¥1,100 million (55.0%) higher than projected by previously released forecasts, respectively. Performance trends by major groups were as follows.
(Takara Shuzo Group)
Net sales are expected to exceed the projection as the domestic alcoholic beverages business, such as shochu and light-alcohol refreshers, and other businesses offset the impacts of the appreciation of yen more than projected on the sales of the Japanese food wholesale business in overseas markets that have been favorable on a local currency basis.
Also for income, operating income is projected to be higher than projected, reflecting such factors as the lowered cost of sales ratio and a decline in SG&A expenses in addition to the increase in gross profit due to accompanying growth in net sales.
(Takara Bio Group)
Net sales are expected to be lower than the projection due to such factors as stronger yen than the projection and a decline in sales of culture medium and bags for medical uses affected by the regulations on immunotherapy in China. However, as for income, the lowered cost of sales ratio due to the robust sales of highly profitable research reagents mainly overseas and declines in research and development expenses, promotion expenses and other expenses in SG&A expenses are expected to result in higher operating income than projected.
Further, today consolidated subsidiary Takara Bio Inc. (The First Section of Tokyo Stock Exchange, security code number: 4974) also announced revisions to forecasts for the six-month period ended September 30, 2016.
3. Full-year business results forecast for the fiscal year ending March 31, 2017
The Company is currently evaluating whether or not revisions to forecasts for consolidated business results for the full fiscal year are necessary and considering the details of possible revisions. The Company will make an announcement in this regard when it announces its business results for the first half on November 10, 2016.
*The above-mentioned forecasts have been prepared based on the information available as of the date of announcement of this document and could differ from the business result figures scheduled to be announced on November 10, 2016.
