Sanrio Company (8136) Q4 2025 earnings summary

Executive summary

• Anniversary campaigns for key characters, especially Hello Kitty's 50th, drove increased recognition and diversification, boosting sales and profits across all segments.

• Operating profit and net profit reached record highs, with operating profit up 92.2% year-over-year and net profit up 137.3%.

• Growth was supported by successful marketing of a broad character portfolio and robust licensing business performance.

• Membership in Sanrio+ reached 2.52 million as of March 2025, reflecting increased customer engagement.

Financial highlights

• FY3/2025 sales: ¥144.9 billion (up 44.9% YoY); operating profit: ¥51.8 billion (up 92.2% YoY); net profit: ¥41.7 billion (up 137.3% YoY).

• Gross profit margin rose to 75.8% (up 3.7pt YoY); operating profit margin increased to 35.8% (up 8.8pt YoY).

• ROE improved to 48.6% (up 19.4pt YoY); EPS reached ¥176.62 (up 141.7% YoY, adjusted for 3-for-1 stock split).

• Cash and cash equivalents at period end were ¥102.3 billion, up from ¥67.9 billion.

• Dividend payout ratio remained stable at 30%.

Outlook and guidance

• FY3/2026 sales forecast: ¥162.2 billion (up 11.9% YoY); operating profit: ¥60.0 billion (up 15.8% YoY); net profit: ¥42.0 billion (up 0.6% YoY).

• Medium-term plan targets net sales of ¥175 billion and operating profit of ¥65 billion or more by FY2027.

• Continued double-digit operating profit growth expected, driven by upcoming character anniversaries and strategic investments.

• SG&A expenses to rise due to strategic investments and organizational reinforcement.

• Dividend to increase by ¥1 to ¥54 per share.