Orion Breweries (409) investor relations material

Executive summary

• FY27/3 1H net sales were ¥15.654bn, down 0.8% YoY and 2.2% below plan; operating profit and EBITDA declined YoY but exceeded plan.

• Beverage growth was offset by lower Tourism & Hotel sales following the prior-year Orion Hotel Naha sale; the absence of its sale gain also weighed on net income.

Financial highlights

• 1H operating profit was ¥2.454bn, down 9.7% YoY; ordinary profit was ¥2.465bn, down 5.7%, and profit before income taxes was ¥2.446bn versus ¥3.614bn.

• Net profit attributable to owners was ¥1.688bn versus ¥2.544bn YoY; adjusted net profit was ¥1.688bn versus ¥1.879bn.

• EBITDA was ¥3.241bn, down 7.6% YoY and 1.6% above plan; net sales excluding liquor tax were ¥12.898bn, down 1.3% YoY.

• Gross profit was ¥8.089bn versus ¥8.503bn YoY; SG&A declined to ¥5.634bn from ¥5.784bn.

• Net cash from operating activities was ¥1.904bn versus ¥2.618bn used in the prior-year period; ending cash and equivalents were ¥7.998bn.

Outlook and guidance

• FY27/3 guidance remained unchanged: net sales ¥31.119bn, operating profit ¥4.352bn, ordinary profit ¥4.185bn, EBITDA ¥5.948bn and net income ¥2.932bn.

• Full-year basic EPS is forecast at ¥66.83 and the dividend at ¥34 per share, comprising ¥17 interim and ¥17 year-end.

• Management expects IP growth and prioritized cost execution to offset the 1H typhoon impact and keep profit on plan; Alcoholic & Beverages targets profit on par with the prior year and Tourism & Hotel targets profit growth.