Kirin Holdings Company (2503) investor relations material

Executive summary

• Revenue for Q2 FY2026 rose 7.2% year-over-year to ¥1,217.9 billion, with normalized operating profit up 36.1% to ¥128.3 billion and profit attributable to owners up 92.5% to ¥101.7 billion; basic EPS nearly doubled to ¥126.33.

• Upward revision of full-year FY2026 forecasts: NOP raised to ¥253.0 billion, profit attributable to owners to ¥160.0 billion, and EPS to ¥200.

• Comprehensive income surged to ¥157,581 million from ¥2,282 million a year earlier.

• Gains from the sale of Four Roses and lower R&D expenses from discontinuation of rocatinlimab development contributed to profit growth.

• Major gain from the sale of Four Roses Distillery, LLC completed in April 2026.

Financial highlights

• Gross profit rose 11.3% to ¥592.7 billion; normalized OP margin (excl. liquor tax) improved to 11.7%.

• Operating profit nearly doubled to ¥129,042 million from ¥68,723 million.

• Cash flows from operating activities increased by ¥70.1 billion to ¥137.3 billion; free cash flow reached ¥191.0 billion.

• Cash and cash equivalents at period end increased to ¥168,075 million from ¥132,408 million.

• Gross D/E ratio improved to 0.62 from 0.91 year-over-year.

Outlook and guidance

• FY2026 revenue forecast revised to ¥2,480.0 billion (+1.9% YoY); NOP to ¥253.0 billion (+0.5% YoY); profit attributable to owners to ¥160.0 billion (+8.4% YoY); basic EPS projected at ¥200.

• Annual dividend forecast raised to ¥76 per share.

• ROIC target maintained at 7.7%.

• Middle East situation expected to impact profits by ~¥10 billion in FY2026; cost controls and price revisions planned to mitigate.

• Profit before tax forecasted at ¥259,000 million (+8.9% YoY).