Takara Holdings (2531) Q4 2025 earnings summary

Executive summary

• Consolidated net sales for the year ended March 31, 2025 rose 6.9% year-over-year to ¥362.7 billion, driven by strong overseas growth and M&A, while operating income fell 7.4% and ordinary income declined 5.0%. Net income attributable to owners increased 0.2% due to extraordinary gains from asset sales.

• Comprehensive income dropped to ¥25,976 million from ¥37,666 million year-over-year.

Financial highlights

• Gross profit increased 5.0% year-over-year to ¥119.6 billion, but operating income fell to ¥20.6 billion and ordinary income to ¥22.2 billion.

• Net income attributable to owners was ¥16.2 billion, up 0.2% year-over-year.

• Free cash flow turned negative at ¥-25.4 billion, mainly due to increased investing activities, especially M&A.

• Total assets rose to ¥477.6 billion, with an equity ratio of 51.3%.

• Cash and cash equivalents at year-end were ¥75.3 billion, a decrease of ¥14.9 billion.

Outlook and guidance

• For the fiscal year ending March 31, 2026, consolidated net sales are forecast to grow 10.6% to ¥401.0 billion, with operating income up 6.3% and net income attributable to owners up 0.6%.

• Overseas sales (excluding Takara Bio) are expected to account for 61.9% of net sales.

• All major segments are expected to see profit increases, supported by new acquisitions and cost control.

• Dividend payout ratio planned at 37.1% with a 31 yen dividend, including a commemorative dividend.

• Exchange rate impact is expected to be minor.