Yamanouchi sets out five-year strategy

Yamanouchi of Japan has set itself a group operating target of 100billion yen ($830 million) for the fiscal year ending March 2006, a 3% rise, while sales are expected to increase 31% to 600 billion yen, according to a report carried by Bloomberg News. Company president Toichi Takenaka explained that earnings growth will not be particularly strong, as Yamanouchi intends to make a number of significant investments over the next five years, most notably the setting-up of a sales and marketing force in the USA.

The company expects to report operating profits of 97 billion yen for the fiscal year just ended and has increased its sales forecast from 450 billion yen to 457 billion yen for this period. Net income is expected to be 40 billion yen, compared with 57 billion yen in the year ended March 2000. For the fiscal year just started, operating profit is forecast to fall 15% to 82 billion yen, and sales should rise 5% to 480 billion yen.

R&D expenses are expected to rise to 80 billion yen by March 2006, or equal to 18% of sales, and Mr Takenaka noted that Yamanouchi plans to more than double its spending on research using human genetic data to 50 billion yen over the next five years.