Orion Breweries (409) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 were ¥15.78bn, with operating profit at ¥2.72bn, both increasing year-over-year and exceeding plan, aided by extraordinary income from the sale of Orion Hotel Naha and treasury share acquisition effects on EPS.

• Profit attributable to owners was ¥2.54bn, with EPS at ¥62.35, boosted by asset sales.

• Both Alcoholic & Beverages and Tourism & Hotel segments showed steady performance, with profitability driven by price increases and operational improvements.

Financial highlights

• 1H FY2026 net sales: ¥15.78bn (105% YoY, 100% vs. plan); operating profit: ¥2.72bn (129% YoY, 109% vs. plan); EBITDA: ¥3.51bn (117% YoY, 106% vs. plan).

• Net profit attributable to owners: ¥2.54bn (167% YoY, 110% vs. plan); EPS: ¥62.35 (223% YoY).

• Total assets decreased to ¥43.91bn from ¥50.88bn at prior year-end; net assets at ¥17.84bn.

• EBITDA margin (excl. liquor tax) improved to 26.8% from 24.4% YoY.

• All sales areas grew YoY; outside prefecture, overseas, and licensing outperformed plan.

Outlook and guidance

• Full-year FY2026 plan unchanged: net sales ¥30.1bn (104% YoY), operating profit ¥3.95bn (113% YoY), EBITDA ¥5.52bn (106% YoY), dividend per share ¥40.

• Adjusted net income (excl. one-time factors) expected to rise YoY, despite lower real estate gains.

• Impact from Asahi GHD's system failure estimated at ¥400mn in sales, with recovery measures in place to maintain guidance.

• Progressing toward mid/long-term targets: revenue CAGR (excl. liquor tax) ~5%, EBITDA margin ~24%, ROE ~15%.

• Full-year profit attributable to owners forecast at ¥3.31bn, EPS ¥81.01.