IR Release

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, 2020

Takara Holdings Inc.

 

Revision of Consolidated Business Results Forecast for the First Half 
of the Fiscal Year Ending March 31, 2021

Kyoto, Japan—Takara Holdings announced revisions to the business results forecast for the first half of the fiscal year ending March 31, 2021 (from April 1, 2020, to March 30, 2021) that it released on August 4, 2020, 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, 2021 (from April 1, 2020, to September 30, 2020)

2. Reason for revision
For the six months ended September 30, 2020, consolidated net sales are expected to exceed the previous forecast (released on August 4, 2020) by ¥5,280 million (4.3%) as the impact of COVID-19 was smaller than expected, each segment of the Group made extra efforts to expand sales amid the pandemic. In addition, Takara Bio Group benefitted from stronger-than-expected demand for PCR testing-related products..
　　In terms of profit, operating income, ordinary income, and net income attributable to owners of the parent are expected to exceed the forecast by ¥3,691 million (169.3%), ¥3,763 million (166.1%), and ¥2,038 million (268.2%) respectively, as a sales increase raised gross profit and SG&A expenses were held down. The performance by each business segment is as follows.

 

[Takara Shuzo]
In Japan, sales of commercial-use products fell significantly as demand for dining out stagnated. However, sales of home-use products rose thanks to stay-at-home demand, and those of raw alcohol exceeded the forecast because of an increase in demand for disinfectant amid the pandemic. For this reason, net sales are projected to be largely in line with the previous forecast. Operating income is expected to exceed the forecast as raw material costs and SG&A expenses were held down.

 

 

[Takara Shuzo International Group]
In overseas markets, the Overseas Alcoholic Beverages Business and the Japanese Food Wholesale Business were significantly affected by a decline in demand from restaurants, the segment’s primary customers, as a result of lockdowns all over the world. Even so, demand did not decline as much as expected. Efforts were also made to boost sales to retailers to make up for a sales decline elsewhere, and initiatives were launched to meet home-delivery demand and takeout demand. Furthermore, the yen remained weaker than expected in the forex market. As a result, net sales are expected to exceed the forecast. Operating income is estimated to exceed the forecast as gross profit rose in tandem with net sales while SG&A expenses were held down.

 

[Takara Bio Group]
The forecast for the bio business was raised in the previous revision (to the extent that such a projection was possible) mainly in response to an increase in demand for products related to PCR testing-related products and inquiries for contract manufacturing of vaccines as COVID-19 spread. Subsequently, demand for products related to PCR testing-related products increased further, and as a result, net sales are expected to exceed the previous forecast. In terms of profit, cost of sales improved because of changes in the sales composition and an increase in the capacity utilization rate. SG&A expenses are also expected to fall below the forecast. Consequently, operating income is expected to exceed the previous forecast.

 

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, 2020. 

 

 

3. Full-year business results forecast for the fiscal year ending March 31, 2021The 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 2020.

 

 

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, 2020.