Kotobuki Spirits (2222) Q2 2025 earnings summary

Executive summary

• Sales and profits reached record highs for the second consecutive year, driven by inbound sales, new store openings, and product price revisions despite rising costs and temporary productivity declines from factory adjustments.

• Net sales for the six months ended September 30, 2024 rose 13.9% year-over-year to ¥32,906 million, with operating profit up 12.9% to ¥7,476 million and profit attributable to owners of parent up 12.1% to ¥4,990 million.

• Nine new stores were opened and one rebranded, including three simultaneous openings at EATOLUMINE in JR Shinjuku Station.

• Sucrey began phased operations at its new Fujisan Shizuoka Factory, with full operations expected by November 2024.

• A joint venture, KMF Co., Ltd., was established in Okinawa to accelerate business growth, with production to start in July 2026.

Financial highlights

• Net sales for FY2025 1Q-2Q rose 13.9% year-over-year to ¥32,906 million; gross profit increased 14.9% to ¥20,376 million.

• Operating profit grew 12.9% to ¥7,476 million; net profit rose 12.1% to ¥4,990 million; EPS was ¥32.07.

• Gross profit margin improved by 0.5 points year-over-year to 61.9%.

• Free cash flow increased 55.0% year-over-year to ¥3,613 million.

• Both sales and profits exceeded initial business forecasts.

Outlook and guidance

• FY2025 full-year forecast: net sales ¥70,000 million (+9.3% YoY), operating profit ¥17,530 million (+11.1% YoY), net profit ¥11,800 million (+8.9% YoY), EPS ¥75.84.

• Dividend per share forecast remains at ¥28.

• CAPEX planned at ¥3,500 million (+81.7% YoY).

• Segment guidance: Sucrey and KCC to see double-digit profit growth; Kujyukushima Group expects declines due to factory consolidation.