Coca-Cola Bottlers Japan Holdings (2579) Q4 2024 earnings summary

Executive summary

• Business income reached JPY 12 billion in FY2024, a sixfold increase year-over-year, surpassing revised targets and marking strong progress toward Vision 2028.

• Revenue grew 2.8% year-over-year to 892.7 billion yen, with sales volume up 2% and gross profit increasing 4.7%, outpacing revenue growth.

• Announced a comprehensive shareholder return program, including a dividend increase plan through 2028, a share buyback of up to JPY 30 billion, and a new benefit program.

• FY2025 targets further profit growth, with business income projected at JPY 20 billion, up 66% year-over-year, and continued foundation strengthening.

Financial highlights

• Operating income reached JPY 13.4 billion, up 289.1% year-over-year, aided by fixed asset sales.

• Net income rose 290.7% to JPY 7.3 billion; EBITDA was JPY 57.5 billion, up 18.6% year-over-year.

• Gross profit margin improved to 45.1% in FY2024 from 44.2% in FY2023.

• Dividend per share set at 53 yen for FY2024, with a further increase to 57 yen forecast for FY2025.

• ROIC improved by 1.1 points year-over-year; EBITDA margin rose to 6.4% from 5.6%.

Outlook and guidance

• FY2025 revenue forecast at 906.1 billion yen (+1.5%), with business income expected to rise 66% to 20 billion yen.

• Operating income projected at 18 billion yen (+34.4%), and net income at 11 billion yen (+50.5%).

• Further price revisions planned in major categories to support profitability.

• Annual dividend planned to increase by 8% year-over-year, with continued share buybacks.

• Transformation savings of 5.2 billion yen targeted for FY2025.