In fiscal 2022, our Group is promoting initiatives to advance the development of fundamental biologics development technologies and become a biologics development company that continuously creates new modalities through the Reagents and Instruments and CDMO business under six-year Long-Term Management Plan FY2026, which ends in fiscal 2026, and the three-year Medium-Term Management Plan FY2023, which ends in fiscal 2023.
In the second quarter of the fiscal year, net sales amounted to ¥31,551 million (up 81.4% year on year), due to an increase in Reagents, Instruments, and CDMO compared to the same period of the previous fiscal year, despite a decrease in Gene Therapy compared to the same period of the previous fiscal year.
Cost of sales was ¥8,056 million (up 44.7% year on year), and gross profit was ¥23,495 million (up 98.6%). Selling, general and administrative (SG&A) expenses were 9,389 million yen (up 16.1% year on year), mainly due to an increase in personnel expenses and R&D expenses. Operating income was 14,105 million yen (up 277.5% year on year).
As a result of the increase in operating profit, ordinary profit increased to ¥14,241 million (up 272.8%), profit before income taxes and others increased to ¥14,203 million (up 332.8%), and quarterly net income attributable to owners of the parent increased to ¥10,009 million (up 340.1%).
Regarding the results for the full fiscal year, we revised the forecast announced on August 3, 2021, based on the results for the second quarter of the fiscal year under review and the most recent situation.
Net sales are expected to exceed the previous forecast for general research reagents, which are on a recovery track, in addition to products related to the new Coronavirus PCR test, despite lower than previously announced forecasts for Instruments and Gene Therapy. With regard to profits, we also expect an improvement in the profit margin due to an improvement in the cost of sales ratio in CDMO business and other factors. Accordingly, operating profit, ordinary profit, and net income attributable to owners of the parent are also expected to exceed the previously announced forecasts.
As a result, for the full fiscal year, the Group forecasts net sales of ¥59,300 million (up 28.7% year on year), operating profit of ¥20,000 million (up 43.3%), ordinary profit of ¥20,200 million (up 42.7%), and net income attributable to owners of the parent of ¥14,100 million (up 47.7%).
Based on our corporate philosophy of "Contributing to the health of humankind through the development of revolutionary biotechnologies such as gene therapy", we are addressing a variety of social issues related to sustainability, including health, through our business activities from the perspective of enhancing corporate value over the medium to long term.
This year, we launched a Sustainability Promotion Committee chaired by the President, identified important issues we call “materialities”, and defined specific goals for each materiality, and have been taking action to achieve those goals. Going forward, we will continue to formalize our efforts to implement sustainability management, with the aim of striking a balance between becoming a sustainable company and achieving sustained growth of Takara Bio Group.
On July 9, 2021, we received from the Tokyo Stock Exchange, Inc. ("TSE") the "Results of the Primary Judgment Regarding Compliance with Listing Maintenance Standards in New Market Segments" with June 30, 2021 as the record date, and confirmed that the new market segments conform to the listing requirements of the Prime Market.
In response, following a resolution of the Board of Directors on September 21, 2021, we submitted an application to the TSE for the "Prime Market".
In January 2022, the TSE announced the results of its selection for new market segments and plans to transition to the new market segment on April 4, 2022.
In order to actively carry out R&D activities, we consider returning profits to shareholders to be an important management issue while paying attention to enhancing internal reserves. Our basic policy is to enhance returns to shareholders by comprehensively considering our operating results and financial position.
The year-end dividend for fiscal 2022 is expected to be ¥24 per share, an increase of ¥8 from ¥16 in the previous fiscal year and ¥4 from the previous forecast (August 3).
We would like to ask our shareholders for their continued understanding and support.