Kotobuki Spirits (2222) Q4 2025 earnings summary

Executive summary

• Achieved record high sales and profits for the third consecutive year, with net sales up 13.0% year-over-year to 72,349 million yen and net profit up 11.9% to 12,122 million yen.

• Growth driven by strong inbound sales (+40.6% YoY), new store openings, and expansion of main brands, despite higher costs from new factory establishments and increased personnel expenses.

• Opened 12 new stores (including 4 new brands) and closed 10, with notable launches at JR Shinjuku Station and Otaru.

• Sucrey Fujisan Shizuoka Factory began phased operations, and a joint venture (KMF) was established in Okinawa for future growth; KMF Corporation newly consolidated.

• Completed a 5-for-1 share split on October 1, 2023.

Financial highlights

• Net sales: 72,349 million yen (+13.0% YoY); operating profit: 17,610 million yen (+11.6% YoY); net profit: 12,122 million yen (+11.9% YoY).

• Gross profit margin slightly decreased to 61.9% (down 0.3pt YoY) due to factory-related costs.

• EPS: 78.00 yen (+12.1% YoY); ROE: 32.2% (down 2.9pt YoY but remains high).

• Free cash flow increased to 9,766 million yen (+10.5% YoY); cash and equivalents at period end: 25,081 million yen.

• PBR at year-end: 9.36x; market capitalization: 375.1 billion yen.

Outlook and guidance

• FY2026 forecast: net sales 79,670 million yen (+10.1% YoY), operating profit 19,650 million yen (+11.6% YoY), net profit 13,400 million yen (+10.5% YoY).

• Dividend per share forecast: 35 yen (+9.4% YoY); CAPEX planned at 2.5 billion yen.

• Plans to open 6 new stores, renew 2, and close 2 in FY2026.

• Segment reorganization: Sucrey and Kujyukushima merged into Sucrey Group; Kotobuki Seika and Tajima Kotobuki into Kotobuki Seika Group.