Kirin Holdings Company (2503) investor relations material

Executive summary

• Q1 FY2026 revenue rose 5.0% year-over-year to ¥573.0 billion, with normalized operating profit up 37.7% to ¥50.0 billion and profit attributable to owners up 11.3% to ¥27.1 billion.

• EPS increased 11.3% to ¥33, progressing steadily against the annual plan.

• Comprehensive income surged to ¥76.4 billion from a loss of ¥18.9 billion in Q1 2025, driven by strong foreign currency translation gains.

• Growth was driven by strong performance in pharmaceuticals, health science, and overseas alcoholic beverages, offsetting domestic declines.

Financial highlights

• Revenue: ¥573.0 billion (+5.0% YoY); Normalized OP: ¥50.0 billion (+37.7% YoY); Profit before tax: ¥50.3 billion (+31.6% YoY).

• Gross profit increased 9.2% YoY to ¥276.9 billion; operating profit rose 28.0% to ¥39.7 billion.

• EPS improved to ¥33.46 from ¥30.05, an 11.3% increase.

• Operating cash flow improved to ¥74.2 billion, up ¥64.0 billion YoY; free cash flow turned positive at ¥48.6 billion.

• Equity ratio attributable to owners improved to 38.7% from 36.8% at year-end 2025.

Outlook and guidance

• No revisions to the full-year forecast; EPS target of ¥193 maintained.

• FY2026 revenue is forecast at ¥2,480.0 billion (+1.9% YoY), normalized operating profit at ¥235.0 billion (-6.7%), and profit attributable to owners at ¥156.0 billion (+5.7%).

• Dividend forecast raised to ¥76.00 per share for FY2026.

• Structural reforms and business optimization ongoing; positive factors include R&D cost reductions and gains from business sales.

• Risks include rising raw material/fuel costs and losses from business divestitures.