Kirin Holdings Company (2503) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 9.6% to ¥2,338.4bn, with normalized operating profit up 4.7% to ¥211.0bn, despite increased brand and R&D investment.

• Net profit attributable to owners fell 48.3% to ¥58.2bn, mainly due to losses from FANCL consolidation, Kyowa Hakko Bio restructuring, and overseas beer business impairments.

• ROIC declined to 4.1% from 8.0% YoY, reflecting higher debt and lower profit; dividend per share maintained at ¥71.

• Kirin advanced CSV management, expanded health science, and received high ESG ratings.

Financial highlights

• Revenue: ¥2,338.4bn (+9.6% YoY); Normalized OP: ¥211.0bn (+4.7% YoY); Profit before tax: ¥139.7bn (−29.1% YoY); Net profit: ¥58.2bn (−48.3% YoY).

• Normalized EPS: ¥172 (−2.8% YoY); ROIC: 4.1%; ROE: 5.0%; Normalized EBITDA: ¥309.0bn (+5.5%).

• Free cash flow: −¥86.5bn (down ¥63.6bn YoY); net debt/normalized EBITDA: 2.39 (up from 1.79).

• Total assets: ¥3,354.2bn (+¥484.6bn YoY); equity: ¥1,533.7bn (+¥107.9bn YoY); cash and cash equivalents: ¥118.6bn.

• Normalized OP margin: 9.0% (down from 9.4%); gross debt/equity: 0.73 (up from 0.58); dividend payout ratio: 98.8%.

Outlook and guidance

• FY2025 revenue forecast: ¥2,440.0bn (+4.3% YoY); normalized OP: ¥212.0bn (+0.5% YoY); net profit: ¥150.0bn (+157.7% YoY).

• ROIC expected to recover to 7.2%; EPS forecast at ¥185 (+7.6% YoY); dividend per share to rise to ¥74.

• Health Science and Alcoholic Beverages to drive OP growth, offsetting higher R&D in Pharmaceuticals.

• Focus on strengthening core brands, expanding health science, and accelerating R&D and digital transformation.