Orion Breweries (409) investor relations material

Executive summary

• Net sales for Q3 FY2026 were ¥23.57bn (105% YoY), with operating profit at ¥4.18bn (120% YoY) and net income attributable to owners at ¥3.50bn, boosted by extraordinary income from the sale of Orion Hotel Naha and share buybacks.

• Both Alcoholic & Beverages and Tourism & Hotel segments showed strong performance, with the former contributing the majority of sales and profit.

• Full-year sales forecast was slightly revised down due to the Asahi GHD system failure, but profit forecasts were revised upward on cost reductions, licensing gains, and improved margins.

• Extraordinary income from asset sales and share buybacks contributed to a significant increase in net income and EPS.

Financial highlights

• Q3 net sales: ¥23.57bn (105% YoY), operating profit: ¥4.18bn (120% YoY), EBITDA: ¥5.37bn (110% YoY), and gross profit: ¥12.43bn (gross margin 52.8%).

• Net profit attributable to owners: ¥3.50bn; adjusted net income: ¥2.83bn (111% YoY); basic EPS: ¥85.53.

• EBITDA margin improved by 2.9% YoY, driven by both business segments.

• Cash dividends per share: ¥20 (interim), annual forecast unchanged at ¥40; dividend payments during the period totaled ¥4.49bn.

• Extraordinary income of ¥1.06bn was recorded, mainly from the sale of Orion Hotel Naha.

Outlook and guidance

• Full-year net sales forecast: ¥29.68bn (103% YoY), operating profit: ¥4.16bn (120% YoY), EBITDA: ¥5.75bn (110% YoY), and net income at ¥3.47bn.

• Basic EPS for the full year is projected at ¥83.99.

• The forecast revision reflects a slight decrease in sales but higher profit expectations due to improved margins and cost control.

• Net income expected to decrease YoY due to lower extraordinary gains, but adjusted net income to rise.

• Q4 operating loss anticipated due to seasonal factors and deferred costs.