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. 24, 2017
Takara Holdings Inc.
Revision of Consolidated Business Results Forecast for the First Half
of the Fiscal Year Ending March 31, 2018
Kyoto, Japan—Takara Holdings announced revisions to the business results forecast for the first half of the fiscal year ending March 31, 2018 (from April 1, 2017, to March 31, 2018) that it released on May 9, 2017, 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, 2018 (from April 1, 2017, to September 30, 2017)
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2. Reason for revision
Consolidated net sales are expected to be \3,800 million (3.0%) higher than previous forecasts as sales in each business segment have remained generally strong and the foreign exchange rates for the yen have depreciated more than forecast.
As for income, due to factors that include an increase in gross profit resulting from the increase in net sales as well as selling, general and administrative (SG&A) expenses that have remained within forecasts, operating income is projected to be \1,400 million (29.8%) higher than forecasted. Also ordinary income and net income attributable to owners of the parent are expected to be \1,500 million (31.9%) and \1,000 million (41.7%) higher than projected by previously released forecasts, respectively. Performance trends by each business segment were as follows.
(Takara Shuzo)
Net sales in the Domestic Alcoholic Beverages Business are expected to exceed the projection, primarily for light-alcohol refreshers. Operating income is also expected to exceed the projection due to an increase in gross profit associated with the increase in net sales as well as SG&A expenses that have remained within forecasts.
(Takara Shuzo International Group)
Net sales and operating income in the Overseas Alcoholic Beverages Business and the Japanese Food Wholesale Business in overseas markets have exceeded the projections on the local currency base. Net sales and operating income are also expected to exceed the projections on the yen base as the foreign exchange rates for the yen have depreciated more than forecast.
(Takara Bio Group)
Although sales of research reagents are expected to be lower than the projection, overall net sales in the Biomedical Business are expected to slightly exceed the projection because sales of scientific instruments and contract services have remained strong. As for income, operating income is also expected to exceed the projection as a result of efforts to curb SG&A expenses in addition to the increase in gross profit associated with the increase in net sales.
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, 2017.
3. Full-year business results forecast for the fiscal year ending March 31, 2018
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 7 2017.
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 7, 2017
