Sapporo Holdings (2501) Q4 2024 earnings summary

Executive summary

• 2024 core operating profit exceeded 22.0 billion yen, up 41.0%, driven by strong domestic beer and structural reforms, despite a net profit decline from U.S. impairment losses.

• Revenue rose 2.3% year-over-year to 530.8 billion yen, supported by strong beer sales in Japan and overseas, and a favorable yen effect.

• Asset sales and balance sheet reforms enhanced capital efficiency; annual dividend increased for the second consecutive year.

• The company continued structural reforms and growth initiatives under its Medium-Term Management Plan (2023-2026).

• 2025 plan targets further profit growth, focusing on domestic beer, continued overseas restructuring, and a planned dividend increase to 60 yen.

Financial highlights

• 2024 revenue rose 2.3% year-over-year to 530.8 billion yen; EBITDA up 22.3% to 44.0 billion yen.

• Core operating profit jumped 41.0% to 22.0 billion yen; operating profit fell 11.9% to 10.4 billion yen due to impairment losses.

• Net profit attributable to owners declined 11.6% to 7.7 billion yen; ROE decreased to 4.1%.

• Basic EPS was 99.00 yen (down from 111.99); operating profit margin was 2.0%.

• Annual dividend per share increased to 52 yen in 2024, with a payout ratio of 52.5%.

Outlook and guidance

• 2025 revenue projected at 532.0 billion yen (+0.2% YoY); core operating profit forecast to rise 11.2% to 24.5 billion yen.

• Operating profit expected to nearly double to 20.0 billion yen; net profit to increase 42.6% to 11.0 billion yen; ROE to improve to 5.5%.

• Medium-term plan targets ROE of 8% and EBITDA of 50 billion yen by 2026.

• Annual dividend forecast for 2025: 60 yen per share.

• Food & Soft Drinks revenue expected to decline due to business transfers, but core operating profit to rise on cost controls.