Coca-Cola Bottlers Japan Holdings (2579) Q1 2025 earnings summary

Executive summary

• Business income increased by JPY 1.3 billion year-on-year in Q1 2025, driven by price revisions, transformation benefits, and top-line growth, keeping the company on track for its full-year business income target of JPY 20 billion.

• Revenue rose 1.7% year-on-year to 189.8 billion yen, supported by improved wholesale revenue per case despite flat sales volume and one fewer business day.

• Profitability improved through price revisions, cost optimization, and transformation initiatives, with further price increases planned for May and October, covering about 80% of annual sales volume.

• Operating loss widened to -10.1 billion yen year-on-year due to fewer non-recurring gains and higher transformation costs, while net loss attributable to owners increased to -6.5 billion yen.

• Strategic focus remains on strengthening foundations, cost reduction, and mid- to long-term profit growth.

Financial highlights

• Gross profit increased by 2% year-on-year to 83.1 billion yen, outpacing revenue growth.

• EBITDA grew 28.8% year-on-year to 4.8 billion yen.

• Business loss improved to -6.5 billion yen from -7.8 billion yen year-on-year.

• Basic loss per share was -36.67 yen, compared to -16.14 yen in Q1 2024.

• Cash and cash equivalents at quarter-end were 64.3 billion yen, down 24.2 billion yen from year-end.

Outlook and guidance

• The company remains confident in achieving its full-year business income target of JPY 20 billion, with full-year 2025 earnings forecast unchanged: revenue of 906.1 billion yen (+1.5% YoY), net income attributable to owners of 11 billion yen (+50.5% YoY), and basic EPS of 64.15 yen.

• Q2 will focus on maximizing profits during the peak demand period and accelerating transformation.

• Price revisions in October will be the largest in company history, with retail prices rising JPY 20-30 per bottle and covering about 80% of annual sales volume.

• Volume is expected to remain flat or grow for the full year, with ongoing initiatives to minimize volume impact.