Takara Holdings (2531): FY2025 Results Summary — Sales Up 8.7% but Profit Falls on Takara Bio Loss; New Medium-Term Plan for 2030

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Takara Holdings Inc. (2531) reported consolidated net sales of 394,316 million yen for the fiscal year ended March 31, 2026, up 8.7% year on year, while operating income declined 17.1% to 17,076 million yen and net income attributable to owners of the parent fell 27.8% to 11,696 million yen. Growth at Takara Shuzo International Group — particularly the overseas alcoholic beverages business, where operating income jumped 78.6% — was offset by an operating loss of -4,688 million yen at Takara Bio Group. Alongside the results, the company announced its Medium-Term Management Plan for 2030, targeting operating income of 37.8 billion yen or more and net sales of 493.0 billion yen or more in FY2031.

Note: In Takara Holdings’ presentation materials, the fiscal year ended March 31, 2026 is labeled “FY2026” and the fiscal year ending March 31, 2027 is labeled “FY2027”; figures and labels in this article follow the source materials. This article is based on the company’s English-language briefing presentation dated May 19, 2026 (Medium-Term Management Plan for 2030 Briefing), which also covers the full-year financial results and forecasts.

Consolidated Results (Full-Year Actual)

Consolidated gross profit rose 6.7% to 127,696 million yen, but operating income, ordinary income, and net income all declined. The percentage of net sales from overseas operations rose 3.5pt to 62.7%. ROE was 4.6% (down 2.2pt) and ROIC was 3.1% (down 0.9pt). Cash flows from operating activities were 17,318 million yen, and free cash flow turned positive at 1,977 million yen (versus -25,407 million yen in the prior year).

Item	FY2026 actual	Vs. FY2025 actual
Net sales	394,316 million yen	+8.7%
Gross profit	127,696 million yen	+6.7%
Operating income	17,076 million yen	-17.1%
Ordinary income	16,861 million yen	-24.0%
Net income attributable to owners of the parent	11,696 million yen	-27.8%
Percentage of net sales from overseas operations	62.7%	+3.5pt
ROE	4.6%	-2.2pt
ROIC	3.1%	-0.9pt

Results by Business

Takara Shuzo saw net sales edge down 0.5% to 119,122 million yen, but operating income rose 13.7% to 5,729 million yen, helped by price revisions and efficient management of SG&A expenses. Takara Shuzo International Group grew net sales 19.4% to 221,888 million yen and operating income 21.8% to 14,201 million yen: within the group, the overseas alcoholic beverages business posted operating income of 12,492 million yen (up 78.6%), driven by Age International in the Whiskey business, while the overseas Japanese food wholesale business saw operating income fall 44.1% to 3,408 million yen on higher SG&A expenses. Takara Bio Group recorded net sales of 40,318 million yen (down 10.5%) and an operating loss of -4,688 million yen, as deteriorating market conditions including in North America and China disrupted the balance between revenue and fixed costs.

Business	Metric	FY2026 actual	Vs. FY2025 actual
Takara Shuzo	Net sales	119,122 million yen	-0.5%
Takara Shuzo	Operating income	5,729 million yen	+13.7%
Takara Shuzo Int’l Group	Net sales	221,888 million yen	+19.4%
Takara Shuzo Int’l Group	Operating income	14,201 million yen	+21.8%
(of which) Overseas alcoholic beverages business	Net sales	28,502 million yen	+21.1%
(of which) Overseas alcoholic beverages business	Operating income	12,492 million yen	+78.6%
(of which) Overseas Japanese food wholesale business	Net sales	195,944 million yen	+18.9%
(of which) Overseas Japanese food wholesale business	Operating income	3,408 million yen	-44.1%
Takara Bio Group	Net sales	40,318 million yen	-10.5%
Takara Bio Group	Operating income	-4,688 million yen	－

FY2027 Forecast

For the fiscal year ending March 31, 2027, Takara Holdings forecasts net sales of 420,000 million yen (up 6.5%), operating income of 18,800 million yen (up 10.1%), and net income attributable to owners of the parent of 11,900 million yen (up 1.7%). ROE is projected at 4.8% (up 0.2pt) and ROIC at 3.4% (up 0.3pt), with EPS of 61.8 yen. By business, the overseas Japanese food wholesale business is expected to grow operating income 33.8% to 4,560 million yen, while Takara Bio Group’s operating loss is forecast to narrow to -2,700 million yen.

Item	FY2027 forecast	Vs. FY2026 actual
Net sales	420,000 million yen	+6.5%
Gross profit	136,600 million yen	+7.0%
Operating income	18,800 million yen	+10.1%
Ordinary income	17,000 million yen	+0.8%
Net income attributable to owners of the parent	11,900 million yen	+1.7%
ROE	4.8%	+0.2pt
ROIC	3.4%	+0.3pt
EPS	61.8 yen	+2.2%

Shareholder Returns

Under the Medium-Term Management Plan for 2030, the company is introducing progressive dividends, with a total payout ratio of 50% on a cumulative five-year basis as the basic policy, and will conduct treasury stock acquisitions flexibly, taking into account the balance with growth investments (the previous plan’s policy was a dividend payout ratio of approximately 35%). For FY2027, dividends of 31 yen are planned (dividend payout ratio 50.2%). The company also announced an acquisition of treasury stock of up to 1.90 million shares for a total cost of up to 3.0 billion yen, over the period from May 15, 2026 to June 30, 2026, funded by gains from the sale of cross-shareholdings completed in the prior fiscal year. On cross-shareholdings, Takara Holdings sold 32 stocks for approximately 7.9 billion yen in FY2026, leaving a holdings balance of approximately 37.1 billion yen, and plans to sell 20 stocks for approximately 6.8 billion yen in FY2027; it aims to reduce total cross-shareholdings by 50% between the end of FY2025 and the end of FY2030.

Medium-Term Management Plan for 2030

Reviewing the previous Medium-Term Management Plan for 2025, the company stated that operating income fell significantly short of the target, declining for four consecutive years, and that ROIC and ROE remained substantially below WACC and the cost of equity. The new Medium-Term Management Plan for 2030 aims to build a global management foundation early to support the business portfolio strategy, restoring the Group to a growth trajectory. The first two years are positioned as a period of structural reform, turnaround, and laying the groundwork for future growth, and the latter three years as a period of accelerating growth and creating future growth drivers. Key measures include restructuring and turning around the bio business and the Japanese food wholesale business in overseas markets through profit structure reform. Takara Bio became a wholly owned subsidiary through an investment of 54.0 billion yen, and the company plans to reduce approximately 2.8 billion yen in fixed costs at Takara Bio by FY2028 and return it to profitability, through measures including discontinuing proprietary gene therapy clinical development programs, withdrawing from GMP cell processing contract services, and closing the Sweden site.

Item	FY2026 actual	FY2028 target (reference)	FY2031 plan
Net sales	394,316 million yen	429,000 million yen	493,000 million yen or more
Operating income	17,076 million yen	23,500 million yen	37,800 million yen or more
ROE	4.6%	6.1%	10% or more
ROIC	3.1%	4.3%	7% or more
EPS (reference)	60.5 yen	76.7 yen	126.3 yen

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.