TAKARA HOLDINGS INC. 
President of Takara Holdings Inc.
In the fiscal year ended March 31, 2023, Takara Shuzo posted an increase in net sales, as sales of light-alcohol refreshers and raw alcohol increased, despite a decrease in sales of shochu and sake. The Takara Shuzo International Group also reported an increase in net sales due to strong demand from eating and drinking establishments and progress in diversifying sales channels. Net sales also increased for the Takara Bio Group because of higher sales of reagents and gene therapy, and particularly significant growth in sales of testing-related reagents for COVID-19, including antigen test reagents. As a result, overall net sales of the Takara Group increased to ¥350,665 million (up 16.5% year on year).
In terms of profit, Takara Shuzo saw an increase in profit by compensating for higher costs of raw materials and fuel through price revisions and cost reductions, while the Takara Shuzo International Group saw an increase in profit due to an increase in gross profit. On the other hand, the Takara Bio Group reported a decrease in profit due to increases in the cost of sales and R&D expenses, among others. These factors enabled the Group as a whole to achieve operating income of ¥37,945 million (down 12.5% year on year), ordinary income of ¥38,706 million (down 10.5% year on year), and net income attributable to owners of the parent of ¥21,206 million (up 2.1% year on year).
We have established a three-year medium-term management plan, Takara Group Medium-Term Management Plan for 2025 (hereinafter, the Medium-Term Plan), which will end in the fiscal year ending March 31, 2026. We began the six-year long-term management plan, TaKaRa Group Challenge for the 100th (hereinafter, TGC100) in 2020 and have worked progressively on the Medium-Term Management Plan for 2022 (the fiscal year ended March 31, 2021 through the fiscal year ended March 31, 2023) for three years. As a conclusion to TGC100, the Medium-Term Plan adopts a management policy to increase enterprise value over a three-year period by accelerating investments in growth and high-priority fields, focusing on utilizing products and services to solve social issues and creating long-term and sustainable growth capital to raise our earning capacity, all while enhancing our value chain for solving social issues. By doing so, we aim to establish global and sustainable business models and increase our enterprise value.
In the final year of the Medium-Term Plan, the Group aims to post no less than ¥420,000 million in consolidated net sales, ¥38,000 million in consolidated operating income, an overseas sales ratio of 60% or more (60% or more, excluding Takara Bio Group), an ROE of 9.0% or more, and an ROIC of 7.5% or more.
For the fiscal year ending March 31, 2024, the first year of the Medium-Term Plan, we forecast net sales of ¥355,000 million (up 1.2% year on year), operating income of ¥26,300 million (down 30.7% year on year), ordinary income of ¥26,800 million (down 30.8% year on year), and net income attributable to owners of the parent of ¥15,000 million (down 29.3% year on year). Although profits are expected to decrease in the fiscal year ending March 31, 2024, we will turn around the trend toward higher profits from the fiscal year ending March 31, 2025 onward through the implementation of the Medium-Term Plan.
The Group has updated the title of Takara Group's Vision (Where the Takara Group wants to be) as stated in TGC100 to "Smiles in Life ~ Smiles are Life's Treasures ~" to make it consistent with what is being promoted in the Medium-Term Plan.
"Smiles in Life" is the most important phrase for the Takara Group, and we define smiles as an important and irreplaceable part of life. We will strive to realize Takara Group's Vision and increase our enterprise value by delivering a well-balanced diet to people around the world through Japanese alcoholic beverages and Japanese food, while also contributing to people's healthy lifestyles.
I would like to ask our shareholders for their continued warm support for the Group.
June 2023
Mutsumi Kimura
Representative Director and President
Takara Holdings Inc
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Takara Holdings Inc. published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 00:10:09 UTC.
