Sapporo Holdings (2501) Q3 2024 earnings summary

Executive summary

• Revenue increased 2.1% year-over-year to ¥385.6B, driven by strong beer sales in Japan, favorable overseas performance, and a weak yen.

• Core operating profit fell 2.9% to ¥14.0B due to lower Food & Soft Drinks profits and higher IT investments, despite gains in Alcoholic Beverages and Real Estate.

• Operating profit surged 84.6% to ¥17.7B, and profit attributable to owners rose 276.2% to ¥11.5B, reflecting asset sales and absence of prior-year impairment losses.

• Annual outlook remains on track, with no revision to consolidated profit guidance.

Financial highlights

• EBITDA rose 3.5% year-over-year to ¥30.4B; EBITDA margin improved.

• Overseas revenue grew 7.2% to ¥96.5B; Real Estate EBITDA up 16.9% to ¥9.7B.

• Cash and cash equivalents increased to ¥23.4B; net debt-to-equity ratio improved to 1.0x.

• Free cash flow was ¥20.7B, supported by asset sales of ¥22.1B.

• Total equity rose 10.8% year-over-year to ¥200.6B; ROE reached 5.5%.

Outlook and guidance

• 2024 revenue forecast revised upward to ¥526.0B; core operating profit guidance unchanged at ¥19.0B.

• Real Estate segment profit forecast raised, Overseas Alcoholic Beverages lowered; consolidated profit plan unchanged.

• ROE target for 2024 is 5.5%, with a medium-term goal of 8.0% by 2026.

• Dividend forecast maintained at ¥52 per share for FY24.

• Profit attributable to owners projected at ¥10.0B; EPS forecast at ¥128.37.