Sapporo Breweries (2501) Q1 2026 earnings summary

Executive summary

• FY2026 is a transition period toward medium- to long-term growth, with structural reforms in both domestic and overseas businesses underway.

• Q1 revenue declined year-over-year, but core operating profit increased, marking the first Q1 profit since adopting IFRS in FY2018.

• Structural reforms include the transfer of the beverage vending machine business in Japan and asset transfers in the U.S. business.

• The next Medium-Term Management Plan (2027–2030) is being formulated, focusing on growth investments and financial strategy.

• The company achieved its ROE target of 8% a year ahead of schedule and is positioning 2026 as a transition year for future growth.

Financial highlights

• Q1 2026 revenue: ¥109.0bn, down 4.3% year-over-year, mainly due to a rebound from last year's pre-price revision demand and structural reforms in Japan.

• Core operating profit: ¥0.6bn, up from a loss last year, driven by overseas growth and domestic reforms.

• EBITDA: ¥4.9bn, up 48.7% year-over-year.

• Profit attributable to owners: ¥-0.88bn, improved by ¥3.3bn year-over-year, aided by exchange rate gains.

• Overseas revenue grew 7.1% to ¥28.5bn, offsetting domestic declines.

Outlook and guidance

• Full-year earnings forecast remains unchanged due to ongoing uncertainties, including the Middle East situation.

• FY2026 revenue forecast is ¥505.0bn (down 0.4%), with core operating profit of ¥22.0bn (down 12.0%).

• Operating profit is expected to drop 75.4% to ¥6.0bn, reflecting structural reform costs.

• Profit attributable to owners is forecast at ¥296.0bn, mainly due to gains from discontinued operations.

• First closing of external capital injection into the Real Estate Business expected June 1.