Our Vision from President and COO
In June 2026, I became Representative Director and President of Takasago International Corporation. First, I would like to express my gratitude to all our stakeholders for their continued support and kindness.
As I take on this role, I wish to reaffirm our core values: our corporate philosophy,“Contributing to Society through Technology,” and our corporate mission, “Create New Value through Innovation Rooted in kaori (aroma in Japanese).” Even in a rapidly changing business environment, we continue to conduct our business activities based on these values to respond flexibly and promptly to stakeholder’s expectations, striving to grow sustainably, contribute to society and enhance our corporate value.
Summary of financial performance for FY2025 and the progress of the Mid-Term Management Plan, New Global Plan-2 (NGP-2), as it enters its final year
In FY2025, the Takasago Group’s net sales decreased 1.8% from the previous fiscal year, totaling 225.1 billion yen. Operating profit also decreased 47.0% from the previous fiscal year, totaling 8.1 billion yen.
By business segment, net sales in Flavors increased 2.3% due to the strong sales in the beverage sector and emerging markets. Net sales in Fragrances increased 1.8% due to the good performance of air care and fabric care products. Regarding Aroma Ingredients, net sales of high-value specialty products were strong, resulting in a 3.2% increase in net sales. In Fine Chemicals, net sales decreased 48.9% year on year due to the postponement of shipments of overseas pharmaceutical intermediates, an area in which we need to enhance quality control systems for major customers.
By area segment, in Japan, we achieved revenue growth driven by steady performance in the beverage sector of the flavor business, but operating profit declined partly due to a decrease in exports of pharmaceutical intermediates in the Fine Chemicals business. In the Americas, shipments declined in the Flavors, Fragrances, and Fine Chemicals business, resulting in a decrease in both revenue and profit. In Europe, revenue increased due to the strong performance of a German subsidiary, but profits declined due to a French subsidiary adjusting shipments in association with the implementation of a new ERP system. In Asia, revenue and gross profit both increased as our products for beverage and fabric care were performing well in China, and gross profit improved due to raw material optimization efforts.
The Takasago Group is implementing our FY2024-2026 medium-term management plan, New Global Plan-2 (NGP-2), under our long-term vision, Vision 2040, with the slogan, ”Care for People, Respect the Environment.”
In the current fiscal year (FY2026), the last year of NGP-2, we are targeting sales of 240 billion yen, a 6.6 % year-on-year increase. Our operating income target is 11 billion yen, 35.3% up from the previous year. While we are concerned about rising costs and potential supply disruptions in our procurement of raw materials due to rising crude oil prices caused by the instability in the Middle East, we will strive to minimize the impact of these issues by adjusting sales prices, optimizing our procurement of raw materials and other initiatives.
Our group set three basic policies in NGP-2: growth expansion overseas, profitability improvement in Japan, and sustainable management. Our key initiatives for growth expansion overseas include the construction of global infrastructure and a production/ supply system to expand business for multinational customers and developing emerging markets such as the Middle East, Latin America, and India. Regarding the improvement of profitability in Japan, we are driving the growth of sales in high-value-added segments in both the Flavors and Fragrances businesses while also reducing costs by optimizing raw materials, improving production and increasing logistics efficiency. In the Aroma Ingredients business, we are expanding sales of high-value-added specialty products, and in the Fine Chemicals business, we invested in manufacturing facilities for pharmaceutical intermediates at the Iwata site (completed in September 2025), thereby increasing production capacity for business growth. In FY2026, we will further accelerate the initiatives we have built up over the past two years and work together as a group to achieve our goals.
Initiatives related to Sustainable Management, one of the basic policies of NGP-2.
In line with the basic policy of sustainable management in NGP-2, we are contributing to solutions to social issues through the implementation of Sustainability 2030 and enhancing our corporate functions to promote sustainable management. Here, I will explain the progress of our main initiatives for sustainability.
■Addressing Climate Change
In 2025, with the aim of further contributing to a carbon-neutral society, we updated our greenhouse gas reduction targets in alignment with the 1.5 °C scenario. We also established a net-zero target, and these targets were re-approved as science-based targets by the Science Based Targets initiative (SBTi) in May 2025. We will pursue further reductions in Scope 1 and 2 emissions, which are derived from energy consumption, by intensifying energy-saving initiatives and increasing the use of electricity generated from renewable sources of energy. Regarding Scope 3 emissions, which are supply chain emissions, we previously participated in the Ministry of the Environment’s Supply Chain Decarbonization Project. Based on the insights gained from this project, we have promoted reduction activities.
■Sustainable Procurement
In 2025, we made significant progress in our sustainable procurement initiatives.
Our group uses many natural raw materials, such as citrus, mint, vanilla, coffee and myrcene, which is the starting material for synthetic menthol. Therefore, sustainable procurement activities are very important. While we have already implemented a range of measures, we established the Sustainable Procurement Office in October 2025 to oversee our sustainable procurement strategies and activities. Then, in February 2026, we joined Together for Sustainability (TfS), an industry-wide initiative in the chemical sector. Through the establishment of this specialized organization and participation in external initiatives, we will strive to advance our initiatives. Regarding the above Scope 3 emissions, we are working to decarbonize our entire supply chain by collecting carbon footprint data on raw materials and engaging with suppliers on climate change issues. In addition, we are currently advancing our proprietary Takasago Global Procurement Sustainability Key Initiatives (TaSuKI) . One of its flagship activities is a grapefruit tree planting project in Florida in the USA, a world-leading citrus-producing region where we have established long-term partnerships with local essential oil processors and citrus farms. Launched in response to declining production due to climate change and disease, this project has begun producing high-quality essential oils, and we will enter a phase of expanding harvest volume. Under TaSuKI and for commodities other than citrus, we will also work together with local agricultural communities to address social challenges and build a sustainable and resilient supply chain.
■SDG-conscious development of new products and materials
We believe that our low-environmental-impact products and technologies will contribute to solutions to SDG issues and enable us to capture many business opportunities. Our group continues to deepen our efforts in areas such as our continuous flow technology and catalyst technology for energy and resource conservation, the development of eco-friendly encapsulated fragrances, and the development of highly biodegradable aroma ingredients. We are also focusing on using biotechnology to develop lowenvironmental-impact nature-derived materials. In 2025, building on insights gained from the Development of Bio Production Technology to Accelerate the Realization of Carbon Recycling project, which was previously selected by the New Energy and Industrial Technology Development Organization (NEDO), we successfully achieved the fermentation-based production of a rose-scented material using previously unused woody biomass. Additionally, we are currently advancing a project that has been selected by NEDO on the theme of “Advancing bio-upcycling technology for the valorization of unused organic residues into valuable aroma ingredients.” To make effective use of limited natural resources, we are actively working to explore and utilize renewable resources, reduce the use of natural raw materials through the development of alternative materials, and utilize unused resources.
We are implementing many different initiatives in each of the ESG areas. We will continue to pursue sustainable management and carefully execute each initiative to enhance long-term corporate value and realize a sustainable society.
Message to Our Stakeholders
I believe that to pursue sustainability, we must collaborate with our stakeholders. We are committed to engaging with our stakeholders and fostering relationships based on trust, as we strive to balance the sustainable enhancement of corporate value with our contributions to society. We deeply appreciate your continued trust and long-term support as we strive to further progress and develop as the Takasago Group.
Integrity is at the core of Takasago‘s DNA. We view this as an asset that we have cultivated over the years and a strength that will remain unchanged in the future. In our sustainability initiatives, including addressing environmental issues, respecting human rights, and ensuring strict compliance, we aim to sincerely address each challenge we encounter to continue to be a global trusted company.