TAKASAGO INTERNATIONAL CORPORATION
4914・Prime Market・Chemicals
Japan
Core segment of the domestic flavors and fragrances business, encompassing Flavors, Fragrances, Fine Chemicals and other operations
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers) | ¥76,968 million | ¥73,552 million | ↑ |
| Operating profit | ¥594 million | ¥4,478 million | ↓ |
| Segment assets | ¥155,246 million | ¥156,609 million | ↓ |
| Depreciation and amortization | ¥3,901 million | ¥3,687 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥15,111 million | ¥6,295 million | ↑ |
| Intersegment internal sales | ¥15,362 million | ¥22,333 million | ↓ |
Business Details
This reportable segment consolidates Takasago International Corporation's domestic operations. The parent company and domestic subsidiaries participate in this segment, manufacturing and selling Flavors (for beverages, confectionery and processed foods), Fragrances (for detergents, cosmetics and air care products), Aroma Ingredients (menthol, musk and other fragrance materials), and Fine Chemicals (pharmaceutical intermediates and specialty chemicals), while also operating a real estate leasing business. In addition to sales to the domestic market, intersegment internal sales (supply to subsidiaries in other regions) also contribute to revenue.
Recent Overview
Sales rose 4.6% year on year, but operating profit plunged 86.7% year on year due to shipment postponements in the Fine Chemicals segment
In the Japan segment for FY2026 (ending March 2026), the Flavors business performed steadily, particularly in beverage applications, resulting in external customer sales of ¥76,968 million (up 4.6% year on year). On the other hand, in the Fine Chemicals business, exports of pharmaceutical intermediates to the U.S. subsidiary decreased significantly due to the need to upgrade the quality control system for a major customer, causing operating profit to deteriorate sharply to ¥594 million (down 86.7% year on year). The increase in fixed assets expanded significantly to ¥15,111 million from ¥6,295 million in the prior period, reflecting more active capital investment domestically.
Key Products
Growth Drivers
- Steady demand for beverage-related flavors in the Flavors business (including domestic and intra-group supply)
- Favorable trends in specialty products within the Aroma Ingredients business
- Cost structure reform, product portfolio optimization, and new area development under the domestic profitability improvement policy in the medium-term management plan NGP-2 (FY2024-FY2026)
- Strengthening of production capacity and quality infrastructure through active domestic capital investment (increase in property, plant, equipment and intangible assets of ¥15,111 million)
- Optimization of the domestic supply chain and restructuring of the synthetic chemicals production system
Risks
- Risk of shipment postponement due to upgrading of the quality control system in the Fine Chemicals business (materialized in FY2026, ending March 2026, significantly impairing operating profit)
- Uncertainty regarding the timing and scale of recovery in Fine Chemicals shipments (dependent on the outlook for recovery in exports to the U.S. subsidiary)
- Surging raw material prices (impact on the Aroma Ingredients business and others)
- Uncertainty regarding the effectiveness of measures to improve domestic profitability in the Flavors and Fragrances businesses
- Price pressure from intensified competition with rival companies
- Limits to sales growth due to the maturation of the domestic market
Last updated: June 23, 2026