Takasago reports mixed first-half results, sales up but profit down

Takasago International Corporation reported net sales of JPY114.5 billion for the first half of fiscal year 2026, a 0.8% increase year-on-year. This was primarily driven by strong beverage flavor shipments in Japan and fabric-care fragrance in Southeast Asia and China. However, operating profit decreased by 22.4% to JPY6.2 billion, attributed to a decline in pharmaceutical intermediate shipments to its US subsidiary from Japan and reduced sales in the US subsidiary. The company anticipates full-year net sales of JPY230.0 billion, a 0.3% increase, with a projected operating profit of JPY12.5 billion, representing an 18.5% decrease from fiscal year 2025.

Strategic initiatives implemented to enhance market valuation include a stock split (5-for-1), an increased year-end dividend forecast from ¥24 to ¥28 per share, and the completion of expansion work for pharmaceutical intermediate production facilities at the Iwata Plant. The Fine Chemicals Division is focusing on growth through enhanced quality management and postponed overseas shipments, while also expanding its pharmaceutical intermediates category and improving product supply capacity. The company aims to leverage synthetic technologies to improve quality of life and reduce environmental impact, with an investment of JPY8 billion in a new GMP intermediate manufacturing plant at Iwata.