Sanrio Company (8136) investor relations material

Executive summary

• Net sales reached a record ¥194.1 billion (+33.9% YoY), with operating profit at ¥78.4 billion (+41.0% YoY) and profit attributable to owners at ¥54.6 billion (+30.9% YoY), marking historic highs for the fifth consecutive year.

• Growth was driven by strong domestic and international licensing and product sales, with significant contributions from Japan, China, Europe, and key characters like Hello Kitty, Kuromi, My Melody, and Pompompurin.

• The company is executing a three-year medium-term plan and a 10-year vision targeting a 5 trillion yen market cap.

• A special investigation revealed inappropriate compensation at the U.S. subsidiary, prompting governance reforms and corrective actions.

• A 5-for-1 stock split was implemented on April 1, 2026, to broaden the investor base.

Financial highlights

• Gross profit rose to ¥150.1 billion (+36.5% YoY), with a gross margin of 77.3% (+1.5pt YoY); operating profit was ¥77.9 billion (+50.3% YoY); EBITDA reached ¥80.7 billion (+49.2% YoY).

• Net profit attributable to owners was ¥54.6 billion (+30.9% YoY); EPS was ¥45.33 (+10.01 YoY); ROE was 41.6%.

• Dividend payout ratio was 30.4%, with dividends paid at ¥69 per share.

• Equity ratio improved to 66.4% (+13.5pt YoY); total assets reached ¥234.7 billion (+¥32.2 billion YoY); cash and cash equivalents at year-end were ¥96.7 billion.

• Total payout ratio rose to 58.3% (+28.2pt YoY).

Outlook and guidance

• FY3/2027 forecast: net sales of ¥229.8 billion (+18.4% YoY), adjusted operating profit of ¥88.8 billion (+13.2% YoY), and net profit of ¥63.8 billion (+16.8% YoY).

• Continued growth expected across all regions, with strategic investments in marketing, personnel, and digital initiatives.

• Shareholder returns policy targets a dividend payout ratio of at least 30%, with potential for share buybacks if investment opportunities are limited.