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Would you please tell us about your future product strategy in Japan?
We plan to restructure our product lineup while reviewing price ranges and the number of items.
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Would you please tell us whether future products will also be offered in both the home delivery and retail store channels, as is the case with the Yakult 1000 series?
We believe differences in price, volume, and packaging have prevented cannibalization between the home delivery and retail store channels for the Yakult 1000 series. In future product strategies, we will consider offering the same product content in both channels with similar variations in price, volume, and packaging.
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Would you please tell us the reason behind the 103.8% year-on-year sales volume for Yakult 1000 products in September?
We believe that this outcome was influenced by the implementation of a monitoring initiative focused on promoting evidence of the immune enhancement benefits provided by Yakult 1000 products, carried out by subsidiary sales companies responsible for approximately half of the national market.
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Would you please tell us about initiatives to attract new customers for the Yakult 1000 series?
For Y1000 products, we will re-engage in securing shelf space and creating effective product displays for the entire Yakult series. For Yakult 1000 products, we plan to emphasize the evidence of benefits beyond improved sleep and stress relief, such as intestinal health and immune enhancement. We will support these activities with flyers and promotional materials for the entire Yakult 1000 series.
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Would you please tell us about your outlook for the number of home delivery customers, given that sales volumes of the Yakult 400 series + Yakult 1000 products are approaching pre-“Yakult 1000 series boom” levels?
The decrease in home delivery customers is primarily attributable to a reduction in the number of Yakult Ladies and the loss of workplace customers due to societal changes that occurred during the COVID-19 pandemic. We intend to gradually recover our customer base by increasing the number of Yakult Ladies and introducing new initiatives at business sites currently under review.
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Would you please tell us about the current sales situation in major overseas countries?
China:
Currently, sales for Yakult Peach Flavor (with Iron) is at about 400,000 bottles/day, with Yakult Muscat Flavor at about 700,000 bottles/day. While there is some cannibalization with existing products, these new flavors are contributing to overall sales growth.
Mexico:
In the first quarter (January–March), sales volumes exceeded the previous year even after the price revision, but from the second quarter (April–June) onward, the impact of Trump tariffs worsened economic sentiment, and sales volumes fell below the previous year. In September, we launched Yakult Muscat Flavor in retail channels, and in October in home delivery channels. October’s monthly sales volumes exceeded the previous year. We expect sales volumes to continue increasing through various initiatives.
Indonesia:
In the third quarter (July–September), the year-on-year sales volume reached approximately 103%. In addition to the home delivery channel, which had been growing, the retail sales channel—previously affected by consumers’ recent tendency to cut back on spending—also exceeded last year’s sales volume during the third quarter. If the retail sales channel continues to outperform the previous year from October onward, we believe this will indicate a strengthening recovery trend. As for Yakult Mango Flavor, launched in June, it has been maintaining a level of about one million bottles per day, contributing to the increase in overall sales volume. As it has also received positive feedback locally, we will continue to leverage it for acquiring new customers and creating effective product displays.
United States:
In the first half of the year (January–June), the impact of the previous year’s production issues still lingered, resulting in a relatively modest growth rate in sales volume. However, in the third quarter (July–September), growth reached double digits, partly due to the lower comparison base from the previous year. While some fluctuations may occur from month to month, we believe that sales volume will continue to increase steadily going forward.
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Would you share the monthly number of bottles sold and year-on-year comparison for Guangzhou Yakult and Yakult (China) Corporation during the third quarter (July–September)?
The number of bottles sold in Guangzhou Yakult and Yakult (China) Corporation, as well as the year-on-year comparison for the third quarter (July–September), are as follows:
July : 6.31 million bottles per day (102.9% YoY)
August : 5.83 million bottles per day (104.6% YoY)
September : 6.14 million bottles per day (108.4% YoY)
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What is your approach to expense execution in China going forward?
While the scale of cost reductions may differ from before, we will continue reducing expenses, including considering factory restructuring. At the same time, we will invest necessary expenses in initiatives to increase sales volumes.
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Would you please tell us why you revised downward the overseas sales and operating income on a currency-neutral basis in the full-year revised plan compared to the July revised plan?
The main reasons are the reduction of the sales volume target in Mexico by a little over 2%, and the increase in promotional expenses associated with the launch of new products in China and Indonesia.
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Would you please tell us why the overseas operating margin for the second half (July–December) is planned at 15.9% and is expected to improve compared to the previous period?
Sales volumes are expected to increase mainly through flavor products offered in each country, and operating income is projected to rise as gross profit growth outpaces expense growth, leading to improved profit margins.
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Would you please tell us why the revised full-year plan shows no change in non-consolidated SG&A expenses compared to the May announcement?
Decreases in items such as advertising and promotional support expenses were offset by increases in transportation and personnel costs, resulting in no net change in non-consolidated SG&A.
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Would you please tell us about the progress of the initiatives under the Medium-Term Management Plan (2025–2030)?
There are no changes to the targets or direction of the Medium-Term Management Plan (2025–2030). In addition to Yakult products as our core domain, we will focus on areas with growth potential such as fermented milk and cosmetics by reviewing sales methods and other approaches. In the Animal Health field, where we collaborate with other companies through capital alliances, net sales have begun to reach the level of several billion yen. For probiotic formulations, data is accumulating at university hospitals, and we plan to expand not only in Japan but also overseas.
