Sapporo Holdings (2501) Q2 2024 earnings summary

Executive summary

• Revenue increased 3.8% year-over-year to ¥247.7B, driven by strong beer sales in Japan and overseas, and favorable currency effects.

• Operating profit turned positive, rebounding to ¥7.6B from a ¥2.8B loss last year, aided by asset sales and absence of impairment losses.

• Profit attributable to owners was ¥6.1B, reversing a ¥5.1B loss in the prior year.

• Strategic focus remains on beer business, international expansion, and real estate value enhancement.

• Comprehensive income surged to ¥24.8B from ¥7.7B, reflecting strong profit and positive currency translation.

Financial highlights

• Revenue rose to ¥247.7B (+3.8% YoY); core operating profit was ¥3.5B (+1.1% YoY).

• EBITDA increased to ¥14.0B (+3.9% YoY); profit attributable to owners was ¥6.1B, reversing a ¥5.1B loss.

• Gross profit rose to ¥75.6B from ¥70.4B YoY; basic EPS was ¥78.04, up from a ¥65.52 loss.

• Total assets increased to ¥689.0B; equity attributable to owners rose to ¥203.4B.

• Cash and cash equivalents at period-end were ¥20.2B, up from ¥17.2B at the previous year-end.

Outlook and guidance

• Full-year 2024 revenue forecast is ¥523.5B (+0.9% YoY), with core operating profit expected at ¥19.0B (+21.5%) and profit attributable to owners at ¥10.0B (+14.6%).

• 2026 targets: ROE 8%, core operating profit ¥25B, EBITDA ¥50B, overseas revenue ¥140B.

• Dividend forecast for 2024 is ¥52.00 per share, unchanged from prior guidance.

• Aims for 25% domestic beer market share and higher long-term profit ratio.

• Plans to solicit external proposals for real estate business by mid-September.