Yakult Honsha is set to exit Argentina after failing to achieve a profit in the country.
The Japanese firm will dissolve its sales subsidiary in Argentina, seemingly drawing a curtain on the Japanese firm's 16-year struggle to gain a foothold in the country.
"Since it has not been possible to establish a sufficient business foundation in Argentina, and we do not see any prospects for profitability, we have decided to dissolve the company," said the group. It added the financial impact on its wider business will be "minimal".
Yakult founded its subsidiary in Argentina in December 1996, and started selling products imported from Brazil in May 1997.
In November this year, Yakult reported a 13% drop in global net profits for its fiscal second quarter. Meanwhile, spare funds for investment appear to be heading to China, with news that it will build its fourth facility in the country.
Yakult Honsha Co., Ltd. (President: Takashige Negishi) would like to inform that we have decided to dissolve Yakult Argentina S.A., our sales subsidiary in Argentina.
1. Background of the dissolution of Yakult Argentina S.A.
Yakult Argentina S.A. started sales of “Yakult” in May 1997, importing products from Brazil. However, since it has not been possible to establish a sufficient business foundation in Argentina and we do not see any prospects for profitability, we have decided to dissolve the company.
2. Profile of Yakult Argentina S.A.
(1) Company name: Yakult Argentina S.A.
(2) Business: Import and sales of “Yakult”
(3) Date of foundation: December 6, 1996
(4) Address of the head office: Av. Corrientes 1302 8o Piso Ciudad de Buenos Aires Argentina
3. Effects on consolidated business performance
Effects of the dissolution of the subsidiary on our consolidated business performance will be minimal.
