Kirin Holdings Company (2503) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached ¥2,433.4bn (+4.1% YoY), with normalized operating profit up 19.3% to ¥251.8bn and profit attributable to owners up 153.4% to ¥147.5bn, driven by broad-based business growth and cost control.

• All major segments contributed to growth, with Health Science turning profitable and FANCL and Blackmores leading gains.

• EPS rose 153.4% to ¥182 and ROIC improved to 7.6% for FY2025.

• Dividend per share increased to ¥74 for FY2025 and is forecast to rise to ¥76 in FY2026.

• Strategic acquisitions (full ownership of FANCL) and divestitures (sale of Kyowa Hakko Bio's amino acid business) strengthened Health Science.

Financial highlights

• FY2025 revenue: ¥2,433.4bn (+4.1% YoY); normalized OP: ¥251.8bn (+19.3% YoY); profit before tax: ¥237.9bn (+70.2% YoY); profit attributable to owners: ¥147.5bn (+153.4% YoY).

• Gross profit increased 8.6% YoY to ¥1,158.0bn; normalized EBITDA reached ¥358.9bn (+16.2% YoY).

• Free cash flow turned positive at ¥110.4bn in FY2025, up ¥196.9bn YoY.

• Total assets grew to ¥3,494.0bn, and equity attributable to owners rose to ¥1,287.0bn.

• Cash flows from operating activities increased to ¥295.4bn, while investing outflows decreased to ¥185.0bn.

Outlook and guidance

• FY2026 revenue forecast: ¥2,480.0bn (+1.9% YoY); normalized OP forecast: ¥235.0bn (–6.7% YoY); profit attributable to owners forecast: ¥156.0bn (+5.7% YoY); EPS forecast: ¥193.

• Dividend per share is planned to increase to ¥76 in FY2026.

• Focus on accelerating Health Science growth in Asia-Pacific, strengthening core beverage brands, and enhancing operational efficiency.

• ROIC is expected to improve further through net income growth and debt repayment.

• FY2026 targets a 6% increase in EPS and profit attributable to owners, despite a projected 6.7% decline in normalized OP due to one-off factors and higher R&D costs.