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Financial results presentation4914TAKASAGO INTERNATIONAL CORPORATIONMaterials and Chemicals

Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending March 2027

The full-year revenue forecast for the fiscal year ending March 2027 was raised from ¥240.0 billion disclosed in August to ¥260.0 billion. The forecasts for operating profit, ordinary profit and net profit were unchanged, so profit is expected to remain flat and margins to decline despite revenue growth.

Worth reading
47Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
200
¥100 million
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,294 100 million+13.0%
Operating profit¥61 100 million-1.2%
Ordinary income¥59 100 million-12.9%
Net income¥44 100 million-19.3%
Gross Profit Margin32.5
Operating profit margin4.7
Selling, general and administrative expenses¥359 100 million
Full-year earnings forecast
Net Sales
¥2,600 100 million
Gross profit
¥837 100 million
Operating profit
¥110 100 million
Ordinary income
¥115 100 million
Net income
¥94 100 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Consolidated
Net Sales53.9
Operating profit55.8
Ordinary income51
Net income46.3
Regional breakdown
Japan
Net Sales53.3
Operating profit72.5
Americas
Net Sales49.6
Operating profit17.2
Europe
Net Sales56.7
Operating profit515.8
Asia
Net Sales57.7
Operating profit78.6
By business
Flavors
Net Sales54.6
Operating profit79.4
Fragrances
Net Sales56.6
Operating profit57.4
Aroma ingredients
Net Sales53.9
Operating profit74.4
Fine Chemicals
Net Sales36.5
Operating profit-192
Other
Net Sales51.1
Operating profit52.2
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue (volume growth, etc.)¥17 100 million
  • Cost of sales¥-1 100 million
  • Impact of the situation in the Middle East¥-21 100 million
  • SG&A expenses¥-13 100 million
  • Foreign exchange and other factors (price adjustments, etc.)¥18 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Average exchange rate during the period: USD158 Yen
  • Average exchange rate during the period: EUR183 Yen
Key KPIsA metric the company considers important as a management benchmark.
  • Average exchange rate during the period: USD158 Yen
    Year on year against the same period last year+6.4%
  • Average exchange rate during the period: EUR185 Yen
    Year on year against the same period last year+13.8%
Segment results
Regional breakdown
Japan
Net Sales413
Operating profit15
Americas
Net Sales324
Operating profit5
Europe
Net Sales243
Operating profit5
Asia
Net Sales314
Operating profit49
Adjustments
Operating profit-12
By business
Flavors
Net Sales688
Operating profit40
Fragrances
Net Sales448
Operating profit15
Aroma ingredients
Net Sales89
Operating profit11
Fine Chemicals
Net Sales62
Operating profit-12
Other
Net Sales7
Operating profit6
Annual Dividend
Annual dividend per share56 Yen
Interim26 Yen
End of period30 Yen
Payout ratio
58.1
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥1,294 100 million (YoY +13.0%)
Operating profit¥61 100 million (YoY -1.2%)
Ordinary income¥59 100 million (YoY -12.9%)
Net income¥44 100 million (YoY -19.3%)
Gross Profit Margin32.5
Operating profit margin4.7
Selling, general and administrative expenses¥359 100 million
Full-year earnings forecastNet Sales ¥2,600 100 million / Gross profit ¥837 100 million / Operating profit ¥110 100 million / Ordinary income ¥115 100 million / Net income ¥94 100 million
Progress against full-year forecastConsolidated Net Sales 53.9 / Operating profit 55.8 / Ordinary income 51 / Net income 46.3 / Regional breakdown Japan Net Sales 53.3 / Operating profit 72.5 / Americas Net Sales 49.6 / Operating profit 17.2 / Europe Net Sales 56.7 / Operating profit 515.8 / Asia Net Sales 57.7 / Operating profit 78.6 / By business Flavors Net Sales 54.6 / Operating profit 79.4 / Fragrances Net Sales 56.6 / Operating profit 57.4 / Aroma ingredients Net Sales 53.9 / Operating profit 74.4 / Fine Chemicals Net Sales 36.5 / Operating profit -192 / Other Net Sales 51.1 / Operating profit 52.2
Segment resultsRegional breakdown Japan Net Sales 413 / Operating profit 15 / Americas Net Sales 324 / Operating profit 5 / Europe Net Sales 243 / Operating profit 5 / Asia Net Sales 314 / Operating profit 49 / Adjustments Net Sales Not disclosed / Operating profit -12 / By business Flavors Net Sales 688 / Operating profit 40 / Fragrances Net Sales 448 / Operating profit 15 / Aroma ingredients Net Sales 89 / Operating profit 11 / Fine Chemicals Net Sales 62 / Operating profit -12 / Other Net Sales 7 / Operating profit 6
Breakdown of Factors Affecting the ChangeFactors Revenue (volume growth, etc.) / Amount ¥17 100 million, Factors Cost of sales / Amount ¥-1 100 million, Factors Impact of the situation in the Middle East / Amount ¥-21 100 million, Factors SG&A expenses / Amount ¥-13 100 million, Factors Foreign exchange and other factors (price adjustments, etc.) / Amount ¥18 100 million
Key KPIsIndicator name Average exchange rate during the period: USD / Value 158 Yen / Year on year against the same period last year 6.4 Yen, Indicator name Average exchange rate during the period: EUR / Value 185 Yen / Year on year against the same period last year 13.8 Yen
Assumptions Underlying the Business OutlookItem Average exchange rate during the period: USD / Value 158 Yen, Item Average exchange rate during the period: EUR / Value 183 Yen
Annual DividendAnnual dividend per share 56 Yen / Interim 26 Yen / End of period 30 Yen
Payout ratio58.1
Items this document does not state (14)
Results for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&ANew initiatives

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The increase is attributed to higher revenue from the Japanese flavor business and the Southeast Asian flavor and fragrance businesses, as well as higher yen-converted revenue from overseas subsidiaries. However, gross profit margin is expected to decline due to higher raw material costs, while operating profit is expected to be maintained through an improvement in the SG&A ratio.

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Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending March 2027 | TAKASAGO INTERNATIONAL CORPORATION (4914) timely disclosure | Komori