Suntory Beverage & Food (2587): FY2025 Results Summary — Higher Revenue on Price Revisions, Lower Income on Rising Costs and Growth Investments

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Suntory Beverage & Food Limited (TSE Prime: 2587) announced its consolidated financial results for the fiscal year ended December 31, 2025 (FY2025) on February 12, 2026. Revenue rose 1.1% year on year to 1,715.4 billion yen as price revisions and improvements in product mix offset lower sales volume, while operating income declined 7.2% to 148.7 billion yen due to higher costs and increased investment aimed at sustainable growth. The company states that FY2025 results were broadly in line with its revised forecast, with revenue increasing and income declining.

Consolidated Results (Full-Year Actual)

Revenue increased 18.7 billion yen (up 1.1%) including currency effects, or 12.7 billion yen (up 0.7%) on a currency-neutral basis. In Japan, revenue increased on price revisions and improved product mix despite lower sales volume. In APAC, revenue declined due to lower sales volume in the beverage businesses in Vietnam and Thailand, while alcoholic RTD sales in Oceania contributed positively. Revenue increased in Europe, supported by steady sales of core brands mainly in the UK. Operating income on an organic basis (deducting extraordinary factors and profit/loss impact from the transferred business) was 156.7 billion yen, down 6.6%. Net income (profit attributable to owners of the Company) was 88.7 billion yen, down 5.1%. Versus the revised forecast, revenue was 5.6 billion yen lower, while operating income and net income exceeded it by 1.7 billion yen and 4.2 billion yen, respectively.

Item (JPY BN)	FY2025 Results	YoY (incl. currency effect)	%YoY
Revenue	1,715.4	18.7	1.1%
Operating Income	148.7	-11.5	-7.2%
Non-recurring Items	-8.0	-0.4	–
Operating Income (Organic basis)	156.7	-11.1	-6.6%
Net Income	88.7	-4.8	-5.1%

Segment Results

By segment on an organic basis, Japan posted revenue of 735.2 billion yen (up 0.5%) with segment profit of 47.0 billion yen (down 4.8%); beverage market sales volume was estimated at 97% of last year while SBF marked 96% year on year, and segment profit declined on lower peak-season sales volumes, higher production and inventory costs, and higher raw material and logistics costs, though it exceeded expectations. APAC revenue was 394.1 billion yen (down 1.7%) with segment profit of 45.0 billion yen (down 13.4%). Europe revenue was 390.2 billion yen (up 6.0%) with segment profit of 66.0 billion yen (up 8.1%). Americas revenue was 196.0 billion yen (up 0.6%) with segment profit of 23.9 billion yen (up 0.2%).

Segment	Revenue (JPY BN)	Revenue %YoY	Segment Profit (JPY BN)	Profit %YoY
Japan	735.2	0.5%	47.0	-4.8%
APAC	394.1	-1.7%	45.0	-13.4%
Europe	390.2	6.0%	66.0	8.1%
Americas	196.0	0.6%	23.9	0.2%
Reconciliation	–	–	-25.1	–
Total	1,715.4	1.2%	156.7	-6.6%

Note: Figures are on an organic basis (revenue excludes revenue from the transferred business; segment profit excludes extraordinary factors and profit/loss impact from the transferred business). %YoY includes currency effects.

Within APAC, beverage revenue in Vietnam was 134.3 billion yen (down 13.9% including currency effects) on sluggish consumption and delays in clearing inventory for the Lunar New Year, and beverage revenue in Thailand was 102.3 billion yen (down 2.9%) amid low temperatures and an early rainy season. Health Supplement revenue was 43.0 billion yen (up 4.5%), and beverage revenue in Oceania was 95.2 billion yen (up 27.3%), lifted by the energy category and the start of alcoholic RTD production and sales in Australia. In Europe, France posted revenue of 138.0 billion yen (up 2.5%), the UK 121.3 billion yen (up 11.1%) driven by effective marketing initiatives for Lucozade, and Spain 69.3 billion yen (up 3.7%).

FY2026 Forecast

For FY2026 (ending December 31, 2026), the company forecasts revenue of 1,826.0 billion yen (up 6.4%), operating income of 155.0 billion yen (up 4.2%), operating income on an organic basis of 163.0 billion yen (up 4.0%), and net income of 89.0 billion yen (up 0.3%). The company plans to promote bold, strategic investments on a global scale, aiming for volume expansion and revenue growth through value creation, with initiatives centered on accelerating innovation, core brands innovation, and strategic CAPEX / structural transformation. From FY2026 the segment forecast is presented in five segments: Japan (revenue of 767.5 billion yen, up 4.4%), Europe (421.5 billion yen, up 8.0%), Asia (312.0 billion yen, up 4.4%), Oceania (126.5 billion yen, up 32.8%), and Americas (198.5 billion yen, up 1.3%).

Item (JPY BN)	FY2026 Forecast	YoY (incl. currency effect)	%YoY
Revenue	1,826.0	110.6	6.4%
Operating Income	155.0	6.3	4.2%
Non-recurring Items	-8.0	0.0	–
Operating Income (Organic basis)	163.0	6.3	4.0%
Net Income	89.0	0.3	0.3%

Shareholder Returns

The annual dividend for FY2025 was 120 yen per share, with a dividend payout ratio of 41.8% and ROE of 7.0%. For FY2026, the company forecasts an annual dividend of 120 yen per share, a dividend payout ratio of 41.7%, and ROE of 6.6%. The company states it will prioritize growth investments, with no additional shareholder return measures planned at this time, and will pursue sustainable shareholder return growth through business expansion and growth investments.

New Management Team / Topics

The company announced a new management team: Josuke Kimura is slated to serve as Representative Director, President (CEO), also holding the Japan region CEO position concurrently, following approval by the Annual General Meeting of Shareholders to be held in late March 2026 and formal decisions at subsequent Board meetings. Region CEOs are Derek Hill (Americas), Jahanzeb Khan (Asia), Daisuke Minato (Oceania), and Pierre Decroix (Europe). During FY2025, the company launched alcoholic RTD manufacturing and sales in Australia, rolled out approximately 180k vending machines equipped with the cashless service Jihanpi in Japan, and all four Suntory Tennensui plants received the highest Platinum level certification under the Alliance for Water Stewardship (AWS) standard.

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