Sapporo Holdings Limited
Financial Results Briefing for the Third Quarter of the Fiscal Year Ending December 2025 November 12, 2025
Event Summary
[Company Name] Sapporo Holdings Limited
[Company ID] 2501
[Event Language] JPN
[Event Type] Earnings Announcement
[Event Name] Financial Results Briefing for the Third Quarter of the Fiscal Year Ending
December 2025
[Fiscal Period] FY2025 Q3
[Date] November 12, 2025
[Number of Pages] 24
[Time] 16:30 – 17:20
(Total: 50 minutes, Presentation: 24 minutes, Q&A: 26 minutes)
[Venue] Webcast
[Number of Speakers] 2
Takayuki Sato Group Managing Officer, General Manager of Accounting Department
Yosuke Nakamura General Manager of Corporate Planning
Department
Presentation
Sato:
I will explain the financial results for the third quarter announced today, as well as the revisions to our full-year earnings and dividend forecasts.
Revenue for the third quarter was JPY 382.6 billion, a YoY decrease of JPY 3 billion (-0.8%). Core operating profit was JPY 20.1 billion, a YoY increase of JPY 6.1 billion (+43.8%). Profit attributable to owners of parent was JPY 10.9 billion, a YoY decrease of JPY 0.6 billion (-5.3%).
Revenue increased in Japan Alcoholic Beverages, which continued to perform well; however, overall revenue declined due to the ongoing softening of the North American beer market and lower sales of overseas brands. Revenue in the Japan Food & Soft Drinks business also decreased partly due to structural reforms, resulting in an overall decline in revenue.
Meanwhile, core operating profit increased overall, driven significantly by Japan Alcoholic Beverages, with both the Food & Soft Drinks business and the Real Estate business also posting higher profits.
Profit attributable to owners of parent declined due to the absence of last year’s one-time gains from asset sales, as well as a deterioration in financial income and expenses stemming from foreign-exchange losses.
We have also revised our full-year earnings forecast. While revenue is now expected to decline, both core operating profit and profit attributable to owners of parent are projected to exceed the initial plan-mainly due to strong performance in Japan Alcoholic Beverages-and we have therefore revised our outlook upward.
In line with this, we have also revised our dividend forecast. As profit attributable to owners of parent has been revised upward from the initial JPY 11.0 billion to JPY 16.5 billion, the dividend forecast has also been revised upward from JPY 60 per share to JPY 90 per share.
We also disclosed today that we will implement a stock split to enhance liquidity and broaden our investor
base. As the effective date is set for January 1, the split will not affect this year’s dividend.
Finally, regarding the introduction of external capital into the Real Estate business, which is part of our medium- to long-term management policy, the process is currently underway with the aim of reaching a conclusion within the year. We appreciate your understanding.
In the initial plan announced in February, we projected revenue of JPY 532 billion, core operating profit of JPY
24.5 billion, and profit attributable to owners of parent of JPY 11 billion.
Under the revised plan, we now expect revenue of JPY 523 billion, a decline of JPY 9 billion (-1.7%); core operating profit of JPY 29.5 billion, an increase of JPY 5 billion (+20.4%); and profit attributable to owners of parent of JPY 16.5 billion, an increase of JPY 5.5 billion (+50%).
ROE is expected to improve from 5.5% to 8.0%.
In the Japan Alcoholic Beverages business, we expect revenue to be JPY 5 billion above the initial plan, driven mainly by higher beer volume. In the Real Estate business as well, revenue is expected to exceed the initial plan by JPY 2 billion, reflecting increased revenue at YGP and higher contributions from equity investments.
Conversely, in the Overseas Alcoholic Beverages business, revenue is expected to be JPY 8.5 billion below the initial plan, due to lower overseas brand sales stemming from deteriorating market conditions and the impact of revised exchange-rate assumptions.
In the Food & Soft Drinks business, revenue is expected to fall JPY 7.5 billion short of the initial plan: domestically due to factors such as price revisions, and overseas due to lower shipment volumes caused by manufacturing issues.
With revenue trending above the initial plan, Japan Alcoholic Beverages are expected to post core operating profit that is JPY 2.9 billion above the initial plan, while the Real Estate business is expected to be JPY 2.5 billion above.
In contrast, in Overseas Alcoholic Beverages, although higher Sapporo brand sales and cost reductions are offsetting part of the decline in overseas brand sales, we have been unable to fully absorb the approximately JPY 0.8 billion negative impact of U.S. tariffs. As a result, core operating profit is expected to be JPY 0.4 billion below the initial plan.
In the Food & Soft Drinks business, while revenue is expected to fall short of the initial plan both in Japan and overseas, cost reductions-including the effects of structural reforms-are expected to offset this, and profit is projected to be roughly in line with the initial plan.
Reflecting the upward revision to the profit forecast, the dividend per share is planned to be increased from the initial JPY 60 to JPY 90. This revision is made while maintaining the payout ratio assumed in the initial plan.
In addition, we disclosed today the implementation of a stock split. With an effective date of January 1, 2026, each share of common stock will be split into five shares. Through this measure, we aim to enhance liquidity and broaden our investor base.
We are also reviewing the shareholder benefit program. For FY2025, the program will remain unchanged, and we will provide updates regarding the program for FY2026 onward at a later date.
Revenue through the third quarter was JPY 382.6 billion, a YoY decrease of JPY 3 billion. Core operating profit was JPY 20.1 billion, a YoY increase of JPY 6.1 billion.
Revenue declined due to lower sales volumes in Overseas Alcoholic Beverages and in the Food & Soft Drinks business. However, structural reform benefits, cost reductions, and solid revenue and profit growth in Japan Alcoholic Beverages more than offset these factors, resulting in higher core operating profit overall.
As demonstrated by the increase in core operating profit, we believe that the earning power of our core businesses continues to improve steadily.
Revenue increased in both the Alcoholic Beverages and Real Estate businesses, while it declined in the Food & Soft Drinks business.
In Alcoholic Beverages, domestic beer performance remained solid, and despite our estimate that the overall market declined YoY, our sales outperformed the market. Including the effect of price revisions, domestic revenue increased 3.8%. Overseas Alcoholic Beverages declined 8.1%, impacted by lower overseas brand sales and by foreign-exchange effects. As a result, total Alcoholic Beverages revenue increased 0.8%.
In Food & Soft Drinks, domestic revenue declined 8.4% YoY due to factors including business divestitures associated with structural reforms. Overseas revenue also declined, reflecting reduced shipments caused by manufacturing troubles at the Malaysia plant and lower sales due to tighter control of promotional expenses aimed at improving profitability. Overall, revenue for the business declined 6.3%.
In the Real Estate business, both YGP offices and the Sapporo operations performed strongly, resulting in a 10% increase in revenue.
Core operating profit increased in all three segments-Alcoholic Beverages, Food & Soft Drinks, and Real Estate. While Overseas Alcoholic Beverages recorded lower profit due to the impact of U.S. tariffs, strong domestic performance offset this, resulting in higher profit for the Alcoholic Beverages business overall.
On a consolidated basis, core operating profit increased from JPY 14 billion last year to JPY 20.1 billion, an increase of JPY 6.1 billion (+43.8%).
AloJapan.com