Sapporo Holdings (2501) Q4 2025 earnings summary

Executive summary

• Achieved record-high core operating profit and profit attributable to owners, with ROE reaching 9.4%, surpassing the FY2026 target a year early.

• Revenue for 2025 was ¥506.9 billion, down 1.1% year-over-year, mainly due to structural reforms in Food & Beverages, despite strong domestic beer sales and price revisions.

• Core operating profit increased across all segments, especially in Japan Alcoholic Beverages, due to improved profitability and structural reforms.

• Profit attributable to owners of parent increased 152.8% to ¥19.5 billion, reflecting improved operating profit and the absence of prior-year impairment losses.

• Real Estate business was classified as discontinued operations following a capital injection agreement with external investors.

Financial highlights

• FY2025 revenue was ¥506.9 billion, down 1.1% year-over-year, but core operating profit rose 48.6% to ¥25.0 billion.

• EBITDA grew 23.2% to ¥42.0 billion.

• Operating profit margin improved to 4.8% from 1.1% year-over-year.

• Basic earnings per share increased to ¥50.02 from ¥19.80, reflecting the stock split adjustment.

• Equity attributable to owners of parent rose to ¥218.9 billion, with a 33.5% equity ratio.

Outlook and guidance

• FY2026 revenue is projected at ¥505.0 billion, with core operating profit expected to decline 12% to ¥22.0 billion.

• Profit attributable to owners is forecast to surge to ¥296.0 billion, mainly from gains on real estate capital injection and loss of control over real estate subsidiaries.

• ROE is projected to spike to 83.4% in FY2026 due to one-time gains.

• Dividend per share to increase from 18 yen in FY2025 to 40 yen in FY2026, with interim dividends introduced and a stock split (5-for-1) effective January 1, 2026.

• Segment reporting will shift to Domestic and Overseas Business from 2026.