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Takasago Releases Consolidated Financial Statement for Q1 2020

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Takasago saw a decrease of consolidated net sales of 3.9% compared to the previous year totaling ¥38,587 million for the quarter running April 1-June 30, 2020.

Takasago has released its consolidated financial results for the first quarter—April 1-June 30, 2020—with consolidated net sales decreasing 3.9% compared to the previous year to ¥38,587 million.

During the first quarter of this consolidated fiscal year, the Japanese economy was impacted by the effects of COVID-19 both within and outside Japan. These impacts include the deterioration of corporate profits, a slowdown in capital investment and decreases in personal consumption.

Previously: Takasago's Lawter B.V. Shares Improve Procurement of F&F Ingredients.

The global economy also fell sharply due to the effect of global pandemic of infectious disease. Although economic activity is gradually resuming, the outlook for domestic and foreign economies remains uncertain and will continue to be in a precarious situation for the time being due to the effects of COVID-19.

Looking at the business segment, net sales in the flavors business decreased 7.8% compared to the previous year to ¥22,782 million due mainly to the weak performance of flavor products for drinks in the parent company and domestic subsidiaries.

Previously: Takasago Backs Climate Task Force Recommendations.

In the fragrances business, net sales rose 7.7% from the previous year to ¥10,737 million due mainly to the strong performance of fragrance products for air freshener in the U.S. subsidiary.

In the aroma ingredients business, net sales decreased 5.9% compared to the previous year to ¥3,320 million due to the weak performance of menthol, the mainstay product of this business segment.

In the fine chemical business, net sales decreased 13.9% from last year to ¥1,386 million due to the effect of some customers’ shipment adjustments on pharmaceutical intermediates.

Operating profit during this period decreased 15.3% from the previous year to ¥1,016 million. Ordinary profit decreased 19.2% from the prior year to ¥934 million.

By region, Japan saw a decrease in net sales totaling ¥16,868 million (down 7.6% from 2019) and operating loss was ¥24 million (operating profit was ¥620 million in the previous year) due to the weak performance in parent company’s flavor business and the domestic subsidiaries.

In the Americas, net sales increased 1.4% compared to the previous year to ¥8,453 million and operating profit amounted to ¥299 million (up 176.4% from 2019) due to the strong performance of the fragrance business in the U.S. subsidiary.

Meanwhile, net sales in Europe increased 1.9% from the prior year to ¥6,847 million due to the effect of the strong performance in the German subsidiary. While operating profit decreased 36.3% from 2019 to ¥291 million due mainly to the effect of product mix in the German and Spanish subsidiaries.

In Asia, net sales decreased ¥6,417 million (down 6.6% from 2019) due mainly to the weak performance in the Chinese subsidiary while operating profit increased ¥490 million (up 59.8% from 2019) due mainly to the profit improved by the fragrance business in the Singaporean subsidiary.

Total assets amounted to ¥185,335 million (up ¥2,505 million compared to the end of the previous fiscal year), due mainly to the increase of notes and accounts receivable (¥2,481 million).

Total liabilities amounted to ¥90,929 million (up ¥2,875 million compared to the end of the previous fiscal year), due mainly to the increase of short-term loans payable (¥2,209 million).

Net assets amounted to ¥94,405 million (down ¥369 million compared to the end of the previous fiscal year), due mainly to the decrease of foreign currency translation adjustments (¥1,339 million), increase of unrealized gains (losses) on available-for-sale securities (¥871 million).

 The full consolidated report can be found on the Takasago website.