Orion Breweries (409) investor relations material

Executive summary

• Q1 FY2027 net sales reached ¥7.19 billion, up 2% year-over-year, driven by growth in the Alcoholic & Beverages segment.

• Operating profit declined 11.4% year-over-year to ¥953 million, mainly due to concentrated strategic investments and the absence of prior-year real estate gains.

• EBITDA for Q1 was ¥1.36 billion, down 9% year-over-year but above plan, reflecting strong licensing business and cost controls.

• Profit attributable to owners of parent dropped 56.1% year-over-year to ¥653 million, reflecting the lack of extraordinary gains from real estate sales seen in the previous year.

• Alcoholic & Beverages Business saw steady performance, absorbing typhoon impact, with licensing and new product launches supporting growth.

Financial highlights

• Net sales: ¥7.19 billion (+2% YoY), Operating profit: ¥953 million (-11% YoY), Net profit attributable to owners: ¥653 million (-56% YoY), EBITDA: ¥1.36 billion (-9% YoY).

• Alcoholic & Beverages Business net sales: ¥6.03 billion (+5% YoY), EBITDA: ¥1.12 billion (-9% YoY).

• Tourism & Hotel Business net sales: ¥1.16 billion (-11% YoY), EBITDA: ¥240 million (-9% YoY).

• Net income per share: ¥15.47 (down from ¥36.46 YoY), progress toward full-year plan: net sales 23.1%, operating profit 21.9%, EBITDA 22.8%.

• Comprehensive income matched net profit at ¥653 million, down from ¥1,488 million year-over-year.

Outlook and guidance

• Full-year outlook remains unchanged, with steady progress toward targets for both 1H and 2H.

• Preparing for the impact of the liquor tax revision and abolition of the Special Measures Act in October 2026, with product portfolio optimization and increased beer composition.

• FY2027 full-year plan: net sales ¥31.1 billion (+4.7% YoY), operating profit ¥4.35 billion (+0.9% YoY), EBITDA ¥5.95 billion (+1.2% YoY), profit attributable to owners projected at ¥2.93 billion (-19.5% YoY), and basic EPS forecast at ¥66.83.

• No revisions to previously announced forecasts.