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Yakult Honsha Co Ltd

2267: XTKS (JPN)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
JPY 7,121.00NplkdSylvwhrf

Yakult 1000 Remains the Growth Engine Despite Deceleration; Persistent Asia Weakness a Concern

Business Strategy and Outlook

Research and development in probiotics has laid the foundation for Yakult’s business, primarily comprising beverage products and pharmaceuticals. The flagship products are probiotics drinks marketed under the namesake brand in 40 countries across four continents, making up an estimated 80% of group sales and 90% of profits. Expanding the international footprint and enhancing domestic profitability through premiumization are the two pillars of Yakult’s growth strategy. Domestic growth lifted by the premium Yakult 1000/ Y1000 success has taken up the baton from overseas volume expansion, becoming a key profit driver.

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