Yakult profits rise on strong international sales

Yakult profits rise on strong international sales

Yakult has announced an increase in first-half sales and profits, helped by its businesses outside Japan.

For the period to 30 September, Yakult reported an increase of 41% in net profit to JPY16.9bn (US$137.8m). Operating income for the period rose 34% to JPY22.4bn, which Yakult indicated was helped by the effect of foreign exchange. Sales increased 7.6% to JPY194.3bn.

The probiotics company, which also has a pharmaceuticals division, said sales from its overseas food and beverage arm rose to JPY78.05bn from JPY66.79bn a year earlier. Sales performance was particularly notable in Asia and Oceania. 

Yakult saw sales increase in the Americas but reported a decline in Europe. The region is a small market for Yakult, accounting for 2.5% of its sales in the first half of its financial year. Yakult predicts its annual sales in Europe will be lower year-on-year.

The group also reported higher operating income from its overseas food and beverage arm. It stood at JPY20.61bn, up from JPY16.1bn.

In Japan, sales dipped slightly to JPY101.2bn from JPY102.3bn demonstrating the firm is still battling sluggish domestic consumption.