[Company analysis] Yakult Honsha Company, Limited (ヤクルト本社)

「Yakult Honsha Company, Limited (ヤクルト本社)」is a Japanese beverage, food, cosmetics and pharmaceutical manufacturing company. This company is known for developing the first lactic acid bacteria beverage in Japan. Utilizing their unique lactic acid bacterium fermentation technology, they also carry out cosmetics and pharmaceutical business. The number of consolidated employees is approximately 27,279.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Yakult Honsha Company, Limited
Company name (Japanese)	ヤクルト本社
Date of establishment	1935
Headquarters location	〒105-8660 東京都港区東新橋一丁目1番19号
Capital	31,117
Consolidated sales	407,017
Consolidated operating profit	45,846
Consolidated total assets	618,532
Consolidated capital	392,279
Capital adequacy ratio	63.4%
Consolidated number of employees	27,279

 

 

 

2. Summary and Features

 
Shirota Minoru(代田稔), a doctor of medicine at Kyoto University, succeeded in the enrichment culture of the lactic acid bacterium "Shirota strain" during microbial research. Five years later, the「Shirota Research Institute(代田保護菌研究所)」was established in Fukuoka, aiming to commercialization of "Shirota strain". It is the beginning of the current「Yakult」, and since its establishment, they have been researched and manufactured lactic acid bacteria related products.

 

Since 1961,「Yakult」divided domestic sales network into 11 regions, and established each sales company that is in charge of each region. Based on this strategy, this company expanded its business to the national level. Actually, current 「Yakult」is very famous for “Yakult Ladies”, but this system was started in 1963. In fact, in the Shikoku region in 1954, there was a good sales record at a workplace that adopted a housewife as a salesperson. By this success, 「Yakult」actively adopted this female salesperson system in nationwide, and current image was established.

At that time, most of the customers of lactic acid beverages were ordinary housewives. Therefore, it was more intimate as a customer if a woman from the same position went on sale. However, the status of these "Yakult Ladies" are not contract workers such as part-time workers. Most of "Yakult Ladies" are registered as sole proprietors, and they are in the same position with retail stores.

Currently,「Yakult」is expanding into the cosmetics and pharmaceutical fields, in addition to the above-mentioned beverage fields by utilizing its unique lactic acid bacteria fermentation technology. They entered cosmetics market with the launch of fermented milk "Joie" in 1970. In pharmaceutical field, 「Yakult」is particularly focused on anti-cancer drugs.

As for the international business, it was started in Taiwan in 1964. After that, they advanced it to Southeast Asia and Central and South America. The sales network is now expanded to European countries and China.「Yakult」is currently operating in 39 countries overseas, and their overseas sales accounts for 40% of the total sales. In particular, sales in China and Indonesia are rapidly increasing.

 

 

 

3. Major Business

 

■ Food business
They mainly handle dairy products, lactic acid bacteria chocolate, and fermented milk.

■ Cosmetics business

■ Pharmaceutical business
Their main business area is anticancer agents. Since they released first drug in 1967, they have been handling general medicines, medical devices, reagents, etc.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		378,307	401,569	407,017
Consolidated operating profit		37,281	43,463	45,846
Consolidated total assets		585,741	631,241	618,532
Consolidated net assets		376,880	386,674	392,279
Breakdown of sales	Japan	186,532	189,213	186,879
	America	45,252	50,158	48,907
	Asia・Oceania	93,364	109,852	120,784
	Europe	7,800	8,342	8,673
	Pharmaceutical business	27,836	25,661	21,696
	Others	17,521	18,340	20,075