Sapporo Holdings (2501) Q2 2025 earnings summary

Executive summary

• Revenue declined 1.2% year-over-year to ¥244.7bn, mainly due to Food & Soft Drinks reforms, while core operating profit nearly doubled to ¥7.0bn, driven by Alcoholic Beverages, Real Estate, and cost management.

• Net profit attributable to owners of parent dropped 70.6% year-over-year to ¥1.8bn, impacted by foreign exchange losses, impairment losses, and absence of prior-year asset sales.

• Domestic alcoholic beverages outperformed the market, while overseas alcoholic beverages and Food & Soft Drinks saw revenue declines.

• Progress is steady toward the Group's profit plan, with domestic operations solid and overseas operations remaining weak.

• EBITDA rose 27.3% to ¥17.8bn, and free cash flow improved to ¥6.9bn.

Financial highlights

• Revenue: ¥244.7bn (down 1.2% year-over-year); overseas revenue fell 4.7%.

• Core operating profit: ¥7.0bn (up 96.2% year-over-year); EBITDA: ¥17.8bn (up 27.3%).

• Operating profit: ¥7.2bn (down 6.1% year-over-year); net profit: ¥1.8bn (down 70.6%).

• Core operating profit margin improved to 2.8% from 1.4% year-over-year.

• Net debt decreased 13.1% to ¥181.3bn; net debt-to-equity ratio improved to 0.9x.

Outlook and guidance

• FY2025 revenue forecast: ¥532.0bn (+0.2% year-over-year); core operating profit forecast: ¥24.5bn (+11.2%).

• Operating profit projected to nearly double to ¥20.0bn; profit attributable to owners of parent forecast to rise 42.6% to ¥11.0bn.

• Full-year EPS expected at ¥141.16, with a dividend payout ratio of 42.5%.

• Overseas alcoholic beverages may fall short due to U.S. tariffs and weak demand, but overall profit target to be met by offsetting with other businesses.

• 2026 financial targets unchanged; focus on cost structure reforms and portfolio reshuffling.