Kotobuki Spirits (2222) investor relations material

Executive summary

• Achieved record-high sales and profits for the fourth consecutive year, with net sales up 8.9% YoY to ¥78,781 million and operating profit up 5.6% to ¥18,598 million.

• Comprehensive income increased 4.3% YoY to ¥12,642 million.

• Opened 11 new stores and closed 9, including new brands and flagship store rebranding.

• Inbound sales grew 6.8% YoY to ¥10,701 million, despite geopolitical headwinds.

• Completed organizational restructuring, integrating subsidiaries and updating segment classifications.

Financial highlights

• Gross profit increased to ¥48,388 million from ¥44,804 million YoY; gross profit margin slightly decreased to 61.4%.

• Ordinary profit increased 5.9% YoY to ¥18,733 million; net profit up 3.6% YoY to ¥12,557 million.

• EPS reached ¥81.32; ROE was 28.5%.

• Cash and cash equivalents at year-end were ¥28,200 million, up from ¥25,081 million.

• Annual dividend per share increased to ¥35.00, with a payout ratio of 43.0%.

Outlook and guidance

• FY2027 forecast: net sales to rise 7.3% to ¥84,500 million, operating profit up 10.5% to ¥20,550 million, and profit attributable to owners of parent to increase 10.0% to ¥13,810 million.

• Basic EPS projected at ¥89.42 for the next fiscal year.

• Inbound sales expected to increase 7.5% YoY to ¥11.5 billion.

• Planned capital investment of ¥4 billion, including a new factory in Okinawa scheduled for summer 2027.

• Dividend per share forecast maintained at ¥35.00.