Kirin Holdings Company (2503) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 8.8% year-over-year to 545.9 bn yen, driven by strong Alcoholic Beverages and Health Science segments, including FANCL's contribution.

• Normalized operating profit increased 9.9% to 36.3 bn yen, but profit attributable to owners fell 6.0% to 24.3 bn yen due to FX and absence of prior year one-time gains.

• EPS decreased 6.0% year-over-year to 30 yen.

Financial highlights

• Revenue: 545.9 bn yen (+8.8% YoY); Normalized OP: 36.3 bn yen (+9.9% YoY); Profit before tax: 38.3 bn yen (-13.4% YoY); Net profit: 24.3 bn yen (-6.0% YoY).

• Gross profit up 10.9% YoY to 253.6 bn yen; normalized EBITDA up 13.7% to 62.7 bn yen.

• Cash flow from operating activities: 10.2 bn yen, down 29.6 bn yen YoY; free cash flow: -35.2 bn yen.

• Total assets: 3,259.1 bn yen, down 95.1 bn yen from Q4 FY2024; total equity: 1,385.9 bn yen, down 147.8 bn yen, mainly due to FANCL acquisition and FX effects.

• Operating profit was flat at 31.0 bn yen (+0.5% YoY); profit before tax declined 13.4% to 38.3 bn yen.

Outlook and guidance

• FY2025 revenue forecast at 2,440 bn yen (+4.3% YoY); normalized operating profit 212 bn yen (+0.5% YoY); profit attributable to owners 150 bn yen (+157.7% YoY).

• Full-year EPS forecast at 185.20 yen; annual dividend forecast raised to 74.00 yen per share.

• Minor impact from US reciprocal tariffs expected in Q1 FY2025; future impact depends on evolving US policy but not anticipated to be significant.

• Monitoring potential risks from raw material and packaging costs, with plans to manage through pricing and cost controls.