Consolidated Financial Statements for the Year Ended March 31, 2023

FY2023 (April 1, 2022 - March 31, 2023)

[UNAUDITED]

May 11, 2023

Company name:

Takara Holdings Inc.

Stock exchange listings:

Tokyo Stock Exchange (PRIME section)

Code number:

2531

URL:

https://www.takara.co.jp/

Company representative:

Mutsumi Kimura, President

Contact:

Masakazu Usami, Public Relations& Investor Relations Dept.

TEL：(075)241-5124

Annual statement filing date (as planned):

Jun 29, 2023

Notes:

1. The accompanying financial statements have been prepared in accordance with accounting principles and practices generally accepted

in Japan.

2. Amounts are rounded down to the nearest million yen.

1. Results for the year ended March 31, 2023 (April 1, 2022 - March 31, 2023)

  1. Consolidated operating results

Note: Percentages indicated changes from the same period of the previous fiscal year.

Year ended March 31, 2023

Year ended March 31, 2022

(Millions of yen)

(%)

(Millions of yen)

(%)

Net sales

350,665

16.5

300,918

8.1

Operating income (loss)

37,945

(12.5)

43,354

100.8

Ordinary income (loss)

38,706

(10.5)

43,230

97.1

Net income (loss) attributable to owners of the parent

21,206

2.1

20,769

96.4

Net income (loss) per share (Yen)

107.26

105.05

Fully diluted net income per share (Yen)

-

-

Return on equity

11.0

12.3

Ordinary income to total assets ratio

10.2

12.9

Operating income to net sales ratio

10.8

14.4

Note: Comprehensive income (loss)

41,278

3.2

39,992

145.0

(Reference) Income (loss) from equity method investment

(49)

46

(2) Consolidated financial position

As of March 31, 2023

As of March 31, 2022

(Millions of yen)

(Millions of yen)

Total assets

399,174

362,438

Net assets

255,318

224,555

Equity ratio (%)

51.1

49.8

Net assets per share (Yen)

1,031.60

912.58

(Reference) Equity

203,951

180,420

(3) Consolidated Cash flow

Year ended March 31, 2023

Year ended March 31, 2022

(Millions of yen)

(Millions of yen)

Cash flow from operating activities

45,478

16,376

Cash flow from investing activities

(10,474)

(10,399)

Cash flow from financing activities

(22,215)

4,133

Cash and cash equivalents, end of year

91,785

75,729

2. Dividends

Dividend per share (Yen)

Year ended March 31,

Year ended March 31,

Year ending March 31,

2022

2023

2024 (Forecast)

First quarter end

-

-

-

Second quarter end

-

-

-

Third quarter end

-

-

-

Year end

37.00

38.00

27.00

Annual

37.00

38.00

27.00

Total dividend (Millions of yen)

7,315

7,512

Payout ratio (%)

35.2

35.4

35.6

Dividend on equity (%)

4.3

3.9

Note: Correction of dividend forecast from the most recent

dividend forecast: Yes

3. Forecast for the year ending March 31, 2024 (April 1, 2023 - March 31, 2024)

Note: Percentages indicated changes from the same period of the previous fiscal year.

Six months ending

Year ending March 31, 2024

September 30, 2023

(Millions of yen)

(%) (Millions of yen)

(%)

Net sales

170,000

3.5

355,000

1.2

Operating income (loss)

11,100

(43.4)

26,300

(30.7)

Ordinary income (loss)

11,400

(42.9)

26,800

(30.8)

Net income (loss) attributable to owners of the parent

6,700

(38.4)

15,000

(29.3)

Net income per share (Yen)

33.89

75.87

4. Others

  1. Material changes in subsidiaries during this period

(Changes in specified subsidiaries that caused a change in the scope of consolidation): No

  1. Changes in accounting policies, accounting estimates and retrospective restatement
    1. Changes based on revisions of accounting standard: Yes
    2. Changes other than ones based on revisions of accounting standard: No
    3. Changes in accounting estimates: No
    4. Restatement: No
  3. Number of outstanding shares (common stock)
    1. Number of outstanding shares at year end (Treasury stocks are included):

As of March 31, 2023

199,699,743 shares

As of March 31, 2022

199,699,743 shares

2)

Number of treasury stocks at year end:

As of March 31, 2023

1,995,612 shares

As of March 31, 2022

1,995,577 shares

3)

Average number of outstanding shares:

Year ended March 31, 2023

197,704,141 shares

Year ended March 31, 2022

197,704,189 shares

Contents of the attached document

1. Overview of Financial Results………………………………………………………………………………………………...

2

(1)

Overview of Financial Results for the Fiscal Year under Review………………………………………….……………

2

(2)

Overview of Financial Position for the Fiscal Year under Review………………………………………………………

5

(3)

Overview of Cash Flows for the Fiscal Year under Review……………………………………………….………….…

5

(4)

Future Outlook…………………………………………………………………………………………………..…….…

5

2. Basic Concept on Selection of Accounting Standards…..…………………………………………………………….………

6

3. Consolidated Financial Statements and Primary Notes…...…………………………………………………………..………

7

(1)

Consolidated Balance Sheets…………………………………………………………………………………...………

7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income………………..………

9

Consolidated Statements of Income……………………………………………………………………………….……

9

Consolidated Statements of Comprehensive Income.………………………………………………………………….

10

  1. Consolidated Statements of Changes in Net Assets……………………………………………………………………. 11
  2. Consolidated Statements of Cash Flows……………………………………………………………………………….. 13

(5) Notes to Consolidated Financial Statements…………………………………………………………………………… 14

(Notes on Premise of Going Concern).………………………………………………………………………………….. 14

(Changes in Accounting Policies).………………………………………………………………………………………. 14

(Segment Information).…………………………………………………………………………………………………..

14

(Revenue Recognition)…………………………………………………………………………………………………..

17

(Per Share Information).…………………………………………………………………………………………………

18

(Significant Subsequent Events).………………………………………………………………………………………... 18

○Supplement for the Consolidated Financial Statements

－ 1 －

1. Overview of Financial Results

  1. Overview of Financial Results for the Fiscal Year under Review
    In the fiscal year under review, ended March 31, 2023, the global economy showed a recovery mainly in the U.S. and Europe, but the outlook remained uncertain due to soaring raw material and energy prices, as well as concerns of a global economic recession caused by monetary tightening to curb inflation in the U.S. and Europe.
    Under these economic circumstances, the Group has endeavored at the Takara Group Medium-Term Management Plan for FY2021-2023, which serves as the first step in the Group's action plans cited in its long-term management vision, TaKaRa Group Challenge for the 100th, announced in May 2020. In the fiscal year under review, which was the final year of the plan, the Group has been appropriately allocating and investing management resources in areas that should be strengthened, and has been focusing on rebuilding business structures and global corporate functions that consistently generate various forms of value that enhance profitability, while flexibly addressing environmental changes. In this way, the Group has focused on achieving sustainable growth in Japan and overseas and enhancing corporate value.
    As a result, in the fiscal year under review, ended March 31, 2023, net sales increased 16.5% year on year to ¥350,665 million gross profit increased 5.6% year on year to ¥119,941 million, and SG&A expenses increased 16.8% year on year ¥81,996 million. Operating income decreased 12.5% year on year to ¥37,945 million, ordinary income decreased 10.5% year on year to ¥38,706 million, and net income attributable to owners of the parent increased 2.1% year on year to ¥21,206 million.
    Results by business segment were as follows.

[Takara Shuzo]

Takara Shuzo gave the highest priority to supplying safe and secure products as a food manufacturer and focused on improving the product mix by developing new products with differentiation points that are supported by consumers and by nurturing high- profit products. In response to soaring raw material and energy prices, Takara Shuzo has committed to thorough cost reductions and efficiency improvement, as well as maintaining and improving profit margins by revising product prices.

The segment's sales and other information are as shown below.

In shochu, sales decreased due to a decline in sales of large-volume products of ko-type shochu and 35% ABV shochu. In sake, although sales of Sho Chiku Bai Gokai increased amid a recovery in the eating and drinking establishment market, sales of such products as Sho Chiku Bai Ten for household-use decreased, resulting in a decline in overall sales. In light-alcohol refreshers, sales grew as sales of Takara Shochu Highball, which is positioned as a core brand, continued to increase, and the launch of Takara Dry Zero Ball also contributed. In seasonings, sales increased due to an increase in sales of Hon Mirin, food seasonings and other seasonings. In raw alcohol, etc., sales also increased.

As a result, net sales for Takara Shuzo increased 2.7% year on year to ¥122,921 million. Cost of sales increased 3.0% year on year ¥93,645 million, and gross profit increased 1.6% year on year to ¥29,276 million. As SG&A expenses decreased 1.2% year on year to ¥24,385, affected mainly by decreases in personnel expenses and transportation costs due to more efficient transfer between workplaces, operating income increased 18.3% year on year to ¥4,890 million.

[Takara Shuzo International Group]

The Takara Shuzo International Group engages in the Overseas Alcoholic Beverages Business, which entails exports from Japan and the manufacture and sale of alcoholic beverages in overseas locations, and the Japanese Food Wholesale Business in overseas markets, through which it sells Japanese food ingredients to Japanese food restaurants, retailers, etc. outside Japan.

The segment's sales and other information are as follows:

Overseas Alcoholic Beverages Business

Sales of Blanton's, the premium single-barrel bourbon, remained brisk, while those of Tomatin Scotch whisky also grew. Sales of sake and other Japanese alcoholic beverages declined in China as they were greatly affected by the COVID-19 crisis, but sales of those increased in the U.S., where the market is large. As a result, net sales of the Overseas Alcoholic Beverages Business rose 29.8% year on year to ¥18,253 million.

Japanese Food Wholesale Business in overseas markets

The Japanese Food Wholesale Business in overseas markets engaged in diversification of sales channels, including retail stores and online sales, and development of product procurement and supply systems that meet customer needs, and there were strong sales in the eating and drinking establishment market in the U.S. and Europe, leading to a net sales increase of 35.2% year on year to ¥121,354 million.

－ 2 －

As a result, net sales for the Takara Shuzo International Group after the elimination of intersegment transactions rose 34.5% year on year to ¥137,483 million. Cost of sales increased 35.8% year on year to ¥95,088 million, and gross profit rose 31.9% year on year to ¥42,394 million. SG&A expenses rose 33.4% year on year to ¥31,573 million, primarily due to increases in personnel expenses and transportation costs. Accordingly, the Takara Shuzo International Group saw operating income increase 27.7% year on year to ¥10,821 million.

[Takara Bio Group]

The Takara Bio Group is developing reagents/instruments that support research and development activities using biotechnology and providing them to biotech researchers around the world as such activities become increasingly widespread. Furthermore, we are developing CDMO contract services to support the development and manufacture of regenerative and cellular medicine and gene therapy, which have been actively developed by pharmaceutical companies in recent years. CDMO refers to the business of contracting out the processes of pharmaceuticals from formulation development to manufacturing, and the Takara Bio Group is focusing on the field of gene therapy. In addition, in the gene therapy business, the Takara Bio Group is working to maximize the value of our proprietary platform technology for biologics discovery by manufacturing and selling manufacturing aids for gene therapy drugs, creating new modalities (therapeutic means), and advancing new clinical development projects.

In this segment, although sales in the instruments and CDMO businesses decreased, sales in the reagents business

increased due to a significant increase in sales of testing-related reagents for COVID-19, including antigen test reagents. Sales in the gene therapy business also increased.

As a result, net sales for the Takara Bio Group increased 15.4% year on year to ¥78,142 million. Cost of sales grew 80.5% year on year to ¥33,377 million mainly due to a change in sales mix, and gross profit decreased 9.0% year on year to ¥44,765 million. SG&A expenses were up 19.3% year on year to ¥24,224 million primarily due to increases in personnel expenses and R&D expenses. Operating income decreased 28.9% year on year to ¥20,541 million.

[Other]

The Other segment includes the real estate rental business, the transportation business, and the wine import and sale business. Net sales of the Other segment increased 0.8% year on year to ¥30,950 million due to continued strong import and sale of wine. Cost of sales increased 0.5% year on year to ¥26,770 million, and gross profit increased 2.1% year on year to ¥4,179 million. SG&A expenses rose 0.8% year on year to ¥1,885 million due to an increase in transportation costs, and operating income was up 3.2% year on year to ¥2,293 million.

－ 3 －

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Takara Holdings Inc. published this content on 25 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2023 08:45:09 UTC.