Sapporo Holdings (2501): FY2025 Results Summary — Record Profit at Every Level as Japan Alcoholic Beverages Drives Growth

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Sapporo Holdings Limited (2501) reported FY2025 (the fiscal year ended December 2025) revenue of 506.9 billion yen, down 5.6 billion yen or 1.1% year on year, while core operating profit rose 8.2 billion yen or 48.6% to 25.0 billion yen and profit attributable to owners of parent rose 11.8 billion yen or 152.8% to 19.5 billion yen. The Company states that, since the adoption of IFRS in FY2018, it achieved record-high profit at every level of profit. ROE was 9.4%, achieving the 8% ROE financial target set for FY2026 in the Medium-Term Management Plan (2023-2026) one year ahead of schedule. The FY2025 results classify the Real Estate business as discontinued operations, and the comparative FY2024 results have been reclassified accordingly.

Consolidated Results (Full-Year Actual)

Core operating profit, which the Company defines as revenue less cost of sales less SG&A expenses, improved to 25.0 billion yen from 16.8 billion yen, lifting the core operating profit margin to 4.9% from 3.3%. Other operating income (expenses) improved by 10.6 billion yen to (0.6) billion yen, and operating profit rose 332.9% to 24.4 billion yen. Results also came in above the revised plan announced in December 2025: revenue was 5.0 billion yen above the revised plan of 501.8 billion yen (+1.0%), core operating profit was 2.5 billion yen above the revised plan of 22.5 billion yen (+11.1%), and profit attributable to owners of parent was 3.0 billion yen above the revised plan of 16.5 billion yen (+18.2%).

Item (bn yen)	FY2025	FY2024	Change	YoY
Revenue	506.9	512.4	(5.6)	(1.1%)
EBITDA	42.0	34.1	+7.9	+23.2%
Core operating profit	25.0	16.8	+8.2	+48.6%
(Core operating profit margin)	4.9%	3.3%	–	–
Other operating income (exp.)	(0.6)	(11.2)	+10.6	–
Operating profit	24.4	5.6	+18.8	+332.9%
Financial income (exp.) / Equity in net income of affiliates	(1.7)	1.6	(3.3)	–
Profit before tax	22.7	7.2	+15.5	+214.6%
Profit from continuing operation	15.1	2.8	+12.3	+446.7%
Profit from discontinued operation	4.4	5.0	(0.6)	(11.3%)
Profit attributable to owners of parent	19.5	7.7	+11.8	+152.8%
ROE	9.4%	4.1%	–	–

As a reference disclosure prior to the classification of the Real Estate business as discontinued operations, the deck also shows FY2025 revenue of 528.5 billion yen (FY2024: 530.8 billion yen), overseas revenue of 122.9 billion yen, EBITDA of 53.9 billion yen and core operating profit of 32.1 billion yen, up 10.1 billion yen or 45.8% year on year.

Segment Results

Alcoholic Beverages revenue rose 5.9 billion yen (+1.5%) to 400.2 billion yen and its core operating profit rose 7.1 billion yen (+33.1%) to 28.5 billion yen, driven by Japan, where revenue increased 4.2% to 291.0 billion yen and core operating profit increased 38.3% to 26.3 billion yen on strengthened brand investment centred on beer and the effect of price revisions. Overseas Alcoholic Beverages revenue fell 7.0% to 87.7 billion yen and core operating profit fell 57.5% to 0.2 billion yen. Food & Beverages revenue declined 9.6% to 106.6 billion yen on structural reforms, but core operating profit rose 23.3% to 4.2 billion yen. All segments achieved profit growth compared with the revised plan announced in December 2025.

Segment (bn yen)	Revenue FY2025	Revenue FY2024	Core operating profit FY2025	Core operating profit FY2024
Alcoholic Beverages	400.2	394.4	28.5	21.4
Japan	291.0	279.2	26.3	19.0
Overseas	87.7	94.3	0.2	0.4
Restaurants	21.5	20.9	2.0	1.9
Food & Beverages	106.6	118.0	4.2	3.4
Japan	80.9	90.7	3.0	2.2
Overseas	25.7	27.2	1.2	1.2
Other / Other・Adjustment (corporate and elimination)	0.0	0.1	(7.8)	(8.0)
Total	506.9	512.4	25.0	16.8

In Japan Alcoholic Beverages, beer sales volume rose 3.2% year on year against an overall market the Company estimates was a little under (1%), and the share of beer within beer-type beverages was 81% (FY2025 plan: 83%). In Overseas Alcoholic Beverages, Sapporo brand volume reached 10.55 million cases, achieving the Medium-Term Plan sales target of 10 million cases one year ahead of schedule; North American sales volume rose 4.6% and APAC and Europe grew 37.3% year on year. The deck notes the impact of U.S. tariffs on Overseas Alcoholic Beverages core operating profit was (0.8) billion yen in FY2025.

FY2026 Forecast (Group Management Plan)

The Company positions FY2026 as a transition period toward medium- to long-term growth and plans revenue of 505.0 billion yen (-0.4%) and core operating profit of 22.0 billion yen (-12.0%), reflecting growth investments and structural reforms. Operating profit is planned to fall 75.4% to 6.0 billion yen on structural reform costs and expenses related to the Real Estate separation, while profit attributable to owners of parent is planned at 296.0 billion yen, up 276.5 billion yen, driven by gains recognised from the injection of external capital into the Real Estate business. ROE is planned at 83.4%. Under the new reportable segment structure, Domestic Business revenue is planned at 381.5 billion yen with core operating profit of 30.1 billion yen, and Overseas Business revenue at 123.5 billion yen with core operating profit of 3.4 billion yen, up 51.9%.

Item (bn yen)	FY2026 Plan	FY2025 Result	Change	YoY
Revenue	505.0	506.9	(1.8)	(0.4%)
EBITDA	38.6	42.0	(3.3)	(8.0%)
Core operating profit	22.0	25.0	(3.0)	(12.0%)
(Core operating profit margin)	4.4%	4.9%	–	–
Other operating income (exp.)	(16.0)	(0.6)	(15.4)	–
Operating profit	6.0	24.4	(18.4)	(75.4%)
Financial income (exp.) / Equity in net income of affiliates	5.2	(1.7)	+6.9	–
Profit before tax	11.2	22.7	(11.5)	(50.9%)
Profit from continuing operation	6.0	15.1	(9.1)	(60.0%)
Profit from discontinued operation	290.0	4.4	+285.6	–
Profit attributable to owners of parent	296.0	19.5	+276.5	–
ROE	83.4%	9.4%	–	–

Shareholder Returns

Based on a policy of a DOE of 3% or higher, the dividend for FY2025 has been set at 18 yen, marking the third consecutive year of dividend increases. For FY2026 the Company plans to raise the dividend significantly to 40 yen per share, an increase of 22 yen, and to introduce an interim dividend (interim: 20 yen, year-end: 20 yen) to enhance shareholder return opportunities. Dividends per share are stated on a post-stock-split basis, reflecting the 5-for-1 stock split effective January 1, 2026, with past dividends restated as equivalent per-share amounts. The Company targets a DOE of 4% or higher by 2030, notes it has made no dividend cuts for over 20 years, and says it will consider timely share buybacks aimed at increasing ROE and EPS. Changes to the shareholder benefit program are planned from the fiscal year ending December 2026, with details to be announced in August 2026.

Item	FY2022	FY2023	FY2024	FY2025	FY2026 Forecast
Dividend per share (yen)	8.4	9.4	10.4	18	40
DOE	2.0%	2.1%	2.1%	3.4%	4.4%
Equity attributable to owners of parent (bn yen)	167.2	182.3	196.0	218.9	491.0

Medium-Term Plan Review and Topics

Alongside the results, the Company disclosed a review of the Medium-Term Management Plan (2023-2026) and the status of its work on the next Medium-Term Management Plan (2027-2030), which it plans to announce during 2026. On the reference basis used for comparability with prior years, core operating profit increased to more than three times the FY2022 level, and the FY2026 ROE target of 8% was met one year early with an FY2025 actual of 9.4%. Approximately 34.0 billion yen of cross-shareholdings was sold over three years, reducing the ratio to equity to 14% as of the end of FY2025 from 28% as of the end of FY2022. By segment, the FY2025 core operating profit margin reached 9.0% in Alcoholic Beverages (Japan) against a FY2026 Medium-Term Plan target of 5.7%, 9.5% in Restaurants (target 5.0%) and 3.8% in Food & Beverages (Japan) (target 3.8%), while Alcoholic Beverages (Overseas) came in at 1.1% against a target of 6.2% and Overseas Beverages at 4.6% against a target of 5.0%.

On the injection of external capital into the Real Estate business, the deck shows a transaction price on an enterprise value basis of 477.0 billion yen in corporate value less 102.4 billion yen of net interest-bearing debt and other items, for an equity value of 374.6 billion yen. Key financial impacts for 2026 include a gain on loss of control of a subsidiary of approximately 330 billion yen (estimated after-tax profit of approximately 290 billion yen), with total cash inflow through FY2029 of approximately 470 billion yen. The transfer is staged, with the first closing in June 2026 for 51%, the second in June 2028 for 29% and the third in June 2029 for 20%. Cash raised is to be allocated primarily to growth investments of approximately 300-400 billion yen, shareholder returns of approximately 100 billion yen through FY2030, and debt repayment of approximately 100 billion yen. The Company also plans to transition to a business holding company structure from July 1, 2026, and states a long-term financial target of ROE of 10% or higher.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.