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 Feb. 10, 2021

Takara Holdings Inc.

 

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

Kyoto, Japan—Takara Holdings announced revisions to the business results forecast for the fiscal year ending March 31, 2021 (from April 1, 2020, to March 30, 2021) that it released on November 10, 2020, as stated below. These revisions were based on consideration of recent performance trends.
 

1. Revised figures for the business results forecast for the fiscal year ending March 31, 2021 (from April 1, 2020, to March 31, 2021)

2. Reason for revision
For the fiscal year ending March 31, 2021, overall consolidated net sales for the Takara Group are expected to exceed the previous forecast (released on November 10, 2020) by ¥3,000 million (1.1%) as net sales for the Takara Bio Group and the Takara Shuzo International Group are projected to be larger than the forecast, although net sales for Takara Shuzo will be a little lower than the forecast.
　　In terms of profit, operating income, ordinary income, and net income attributable to owners of the parent are expected to exceed the forecast by ¥5,400 million (39.1%), ¥5,300 million (37.9%), and ¥2,600 million (36.6%) respectively, as a sales increase and a lower cost of sales ratio raised gross profit and SG&A expenses were held down. Operating income and ordinary income are projected to be an all-time high.
　　The performance by each business segment is as follows.

 

[Takara Shuzo]
In Japan, net sales are expected to fall a little below the previous forecast due to the prolonged effects of the spread of COVID-19. However, with the aim of achieving the revised forecast, measures will continue to be taken to meet various needs amid the pandemic, including development of products that respond to demand for domestic use and transmission of information using social media and other means. In terms of profit, operating income is projected to be in line with the forecast as raw material costs, promotion and transportation expenses and other expenses will be held down.

 

 

[Takara Shuzo International Group]
In overseas markets, while sales for dining out decreased as a result of lockdowns all over the world, proactive initiatives were taken such as meeting takeout demand from restaurants, expansion of sales channels for retailers and establishment of e-commerce sites. As a result, net sales are expected to exceed the previous forecast. In terms of profit, operating income is estimated to exceed the forecast as gross profit is expected to grow as a result of increased net sales while SG&A expenses were reduced.

 

[Takara Bio Group]
Despite the impact of the new coronavirus disease pandemic, net sales of research reagents and scientific instruments are expected to be steady, exceeding the previous forecast. In addition, demand for new coronavirus testing-related products, such as in vitro diagnostics, is expected to continue to increase. In terms of profit, gross profit is expected to significantly exceed the previous forecast due to an increase in net sales, as well as a further decline in the cost of sales ratio due to changes in the sales composition and an improvement in the production utilization rate, etc. Consequently, operating income is expected to exceed the previous forecast, despite increases in research and development expenses and other expenses.

 

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. 

 

 

　For further details of forecasts for each business segment, please refer to pages 8/13 to 11/13 in “Supplement for the Consolidated Financial Statements for the Third Quarter Ended December 31, 2020,” announced today.

　Further, today consolidated subsidiary Takara Bio Inc. (The First Section of Tokyo Stock Exchange, security code number: 4974) also announced revisions to forecasts and dividend forecasts for the fiscal year ending March 31, 2021. 
 

 

 

*    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 actual results, etc.