Making the food science business the Group's second core business after sugar

「Among these areas, we position senior nutrition as one of the fields in which the group will focus on expanding its business platform, as demand is expected to grow further for extending healthy life expectancy, maintaining activities of daily living (ADL), and appropriate nutritional intake tailored to each senior’s condition.」

「Expand revenue in the health-related field, the Life Energy business, to ¥50,000 million by the fiscal year ending March 2026 Life Energy business revenue for the fiscal year ending March 2026: ¥25,348 million」

「Expand revenue in the health-related field, the Life Energy business, to ¥50,000 million by the fiscal year ending March 2026 (Life Energy business revenue in the fiscal year ended March 2025: ¥25,071 million).」

「The business recorded higher revenue and profit due to increased sales of nutritional therapy foods and food additives in the Food Tech business. Revenue from the Vitality Health Foods business, which was added in the previous consolidated fiscal year and focuses mainly on nutritionally enhanced foods for active people interested in health and physical fitness, also contributed to results. As a result, the Life Energy business recorded revenue of ¥12,379 million, up 4.8% year on year, and operating profit of ¥632 million, up 520.7%.」

「Expand revenue in the health-related field, the Life Energy business, to ¥50,000 million by fiscal 2025 (Life Energy business revenue in fiscal 2022: ¥22.3 billion).」

「Overseas Palatinose sales increased, while demand for Palatinit in candy applications remained solid. Sugarcane extract sales remained strong in domestic food applications and exceeded the year-earlier period in environmental deodorizing applications. Higher profit from sales of nutritional foods and related products acquired from Terumo in the previous consolidated fiscal year also contributed to results. In the consolidated second-quarter period, DM Mitsui Sugar Co., Ltd. acquired shares in Muscle Deli Co., Ltd., which operates lifestyle support and meal delivery businesses, making it a consolidated subsidiary.」

「Overseas Palatinose sales increased, while demand for Palatinit in candy applications remained solid. Domestic sales of sugarcane extract for food applications also remained strong. Although higher profit from sales of nutritional foods and related products acquired from Terumo in the previous consolidated fiscal year contributed to results, lower revenue from gelling agents and fewer Bio business orders affected profit. As a result, the Life Energy business recorded revenue of ¥12,878 million, up 25.4% year on year, and operating profit of ¥17 million, down 88.9%.」

「Palatinose recorded higher profit due to improved purchase prices and other factors. Palatinit performed strongly in candy applications and contributed to both revenue and profit. Increased orders in the Bio business and higher profit from sales of nutritional foods and related products acquired from Terumo Corporation in the previous consolidated fiscal year also contributed to results. As a result, the Life Energy business recorded revenue of ¥6,504 million, up 27.4% year on year, and operating profit of ¥348 million, up 174.7%.」

「Expand revenue in the health-related field, the Life Energy business, to ¥50 billion by fiscal 2025 (Life Energy business revenue in fiscal 2022: ¥22.3 billion).」

「Palatinose sales for milk-based beverages and overseas markets remained broadly in line with the year-earlier period. Palatinit sales for candy and jelly applications and domestic sugarcane extract sales for feed applications both remained solid. Despite the impact of delays in production adjustments associated with the renewal of liquid food products, overall profit recovered, driven by increased sales of food colorings and quality improvers, as well as higher revenue and profit in the Bio business. As a result, the Life Energy business recorded revenue of ¥16,503 million, down 3.7% year on year, and operating profit of ¥447 million, up 41.6%.」

「In the Life Energy business, Palatinose sales for soft drinks and overseas markets remained broadly in line with the year-earlier period, while Palatinit, which performed well in some areas amid the recovery in human traffic, was affected by the weaker yen, resulting in higher purchase prices. Domestic sales of sugarcane extract for environmental deodorizing applications remained strong, and feed applications also remained firm. However, the business was affected by delays in production adjustments associated with the renewal of liquid food products. Overall, revenue declined from the year-earlier period, although profit recovered partially. As a result, the Life Energy business recorded revenue of ¥10,273 million, down 11.4% year on year, and operating profit of ¥161 million, up 884.8%.」

「The Company has also begun web sales of a new in-house product using Palatinose, "ZUNOU UP (ズノアップ)," a tablet designed to be easy to take.」

「The Life Energy business will contribute to a sustainable society by broadening its focus to the nutrition and health fields, including the Group's longstanding expertise in sugars and sugar-derived ingredients, and by providing nutritional foods suited to daily performance and individual life stages. Focusing particularly on the function of protein among the 5 major nutrients, the Company aims to create new core businesses centered on R&D. In Japan, it will expand care and nutritional therapy foods with a view to developing the home-care market, while seeking to capture the growing senior market through overseas expansion of existing products tailored to individual national markets.」

「As a result, the Life Energy business recorded revenue of ¥17,146 million, compared with ¥14,915 million in the same quarter of the previous year, and operating profit of ¥316 million, compared with ¥873 million.」

「In the Life Energy business, sales volumes of Palatinose for soft drinks and sugarcane extract for food, deodorizing and feed applications were strong, while overseas demand remained solid. As a result, the Life Energy business recorded revenue of ¥11,598 million, compared with ¥9,631 million in the same quarter of the previous year, and operating profit of ¥16 million, compared with ¥459 million.」

「In the Life Energy business, sales volumes of Palatinose for soft drinks and sugarcane extract for food and feed applications increased, while overseas demand remained solid. In addition, the business benefited from the consolidation of a newly integrated company following the management integration. As a result, the Life Energy business recorded revenue of ¥6,713 million and operating profit of ¥82 million.」

「The Life Energy business, renamed from the Food Science business effective 1 April 2021, aims to contribute to extending healthy life expectancy by using the nutritional and functional properties of food to maintain and improve people's daily performance, while providing foods suited to each individual's life stage. The Company will seek to expand earnings capacity while considering the use of external resources through collaboration with other companies and M&A, in addition to leveraging the expertise of the Group.」

「In the Food Science business, some recovery in domestic Palatinose sales volumes and growing demand for sugarcane extract in disinfectant and feed applications both in Japan and overseas resulted in revenue broadly in line with the year-earlier period and higher profit.」

「In the Food Science business, overseas Palatinose sales volumes remained solid, while demand for sugarcane extract in disinfectant applications grew both in Japan and overseas. As a result, revenue was broadly in line with the year-earlier period and profit increased. Among consolidated subsidiaries, ㈱タイショーテクノス recorded higher revenue and profit due to increased sales volumes of lactic acid bacteria and an improved cost ratio following the production consolidation carried out in the previous fiscal year. ニュートリー㈱ recorded lower revenue because it had to suspend sales activities due to the impact of COVID-19, but profit increased partly due to improved selling, general and administrative expenses. As a result, the Food Science business as a whole recorded revenue of ¥9,631 million, down 2.7% year on year, and operating profit of ¥459 million, up 60.4%.」

「In the Food Science business, domestic operations were affected by the spread of COVID-19, but higher overseas sales volumes of Palatinose and increased adoption of sugarcane extract in disinfectant applications resulted in higher revenue and profit.」

「In the Food Science business, sales of Palatinose and Palatinit were somewhat sluggish, but improved margins on Palatinose lifted operating profit above the previous consolidated fiscal year. Sugarcane extract also recorded higher revenue and profit as adoption in sanitation applications increased.」

「In the Food Science business, Palatinose was adopted in new products by major customers as an energy source for exercise, and operating profit exceeded the year-earlier period. Among consolidated subsidiaries, ㈱タイショーテクノス recorded higher revenue and profit due to strong sales and improved its cost ratio following the start-up of the new plant. ニュートリー㈱ also recorded higher revenue and profit due to increased sales of the liquid food business and other operations acquired at the beginning of the fiscal year. As a result, the Food Science business as a whole recorded revenue of ¥15,280 million, up 1.9% year on year, and operating profit of ¥649 million, up 15.3%.」

「In the Food Science business, Palatinit sales to the candy and other confectionery markets remained strong, while Palatinose sales volumes declined but margins improved, resulting in operating profit above the year-earlier period. Among consolidated subsidiaries, ㈱タイショーテクノス recorded lower profit due to initial costs associated with the launch of its new plant. ニュートリー㈱ recorded higher revenue from the liquid food business acquired at the beginning of the fiscal year, but lower profit due to higher miscellaneous expenses. As a result, the Food Science business as a whole recorded revenue of ¥5,132 million, up 2.0% year on year, and operating profit of ¥165 million, down 41.7%.」

「In the Food Science business, sales volumes increased as public relations highlighting Palatinose's effect of improving exercise endurance proved effective, including its adoption in new products by a major beverage manufacturer. Sales of Palatinitt to major customers also remained strong, resulting in higher revenue and profit. Among consolidated subsidiaries, ニュートリー㈱ recorded lower revenue and profit due to lower sales and higher personnel, freight and other expenses associated with strengthening its sales structure. ㈱タイショーテクノス recorded higher revenue but lower profit, as it incurred one-time costs related to the construction of a new plant and research and development facility. As a result, revenue was ¥19,200 million, down 1.9% from the previous consolidated fiscal year, and operating profit was ¥471 million, down 55.3%.」

「In the Food Science business, sales of Palatinose and Palatinitt remained strong, with both revenue and operating profit exceeding the year-earlier period. Among consolidated subsidiaries, ニュートリー㈱ recorded lower revenue and profit due to weak sales of some products in the business acquired in the previous fiscal year, as well as higher personnel expenses and other costs associated with strengthening its sales structure. ㈱タイショーテクノス recorded higher revenue but lower profit, as it incurred one-time costs, including construction costs for a new plant, in connection with the consolidation of production from Mitsui Sugar. As a result, the Food Science business as a whole recorded revenue of ¥14,992 million, down 0.4% year on year, and operating profit of ¥563 million, down 40.9%.」

「In the Food Science business, sales of Palatinose and Palatinit remained strong, but operating profit fell below the level of the same period of the previous year due to higher procurement costs for Palatinose and other factors.」

「Among the consolidated subsidiaries, 北海道糖業㈱ reported lower profit due to a decline in sales volumes, while 生和糖業㈱ performed strongly, with both production and sales volumes exceeding those of the same period of the previous year.」

「Sales volumes of Palatinose and Palatinit were generally on a par with the previous year, but operating profit exceeded the same period of the previous year because selling, general and administrative expenses declined. Among the consolidated subsidiaries, sales at ㈱タイショーテクノス were strong, while ニュートリー㈱ expanded in scale through the business acquisition implemented at the beginning of the period and reported higher revenue and profit.」

「We will promptly integrate the nutrition business acquired from ㈱三和化学研究所 by ニュートリー㈱ effective 1 April 2017, thereby strengthening the business foundation.」

「At a meeting of the Board of Directors held on 7 September 2016, the Company resolved that its consolidated subsidiary ニュートリー㈱ would acquire part of the nutrition business of ㈱三和化学研究所, and the two companies entered into a business transfer agreement on 15 September 2016. The business transfer was scheduled for 1 April 2017.」

「In the Food Science business, in addition to maintaining and improving profitability in existing fields, we face the challenge of actively pursuing growth areas. Through measures including developing new markets and using M&A, we will work to make the business the second pillar of the Group after the sugar business.」