Coca-Cola Bottlers Japan Holdings (2579) Q2 2026 earnings summary

Executive summary

• Business income surged by JPY 6.6 billion year-over-year, surpassing 60% of the full-year profit growth target before peak season, and net income returned to profit for the first time in eight years.

• Revenue for the first half of 2026 rose 1.3% year-over-year to JPY 423.2 billion, with sales volume up despite unfavorable weather.

• Profitability improved due to transformation initiatives, price revisions, cost savings, and reduced depreciation from revised asset useful lives.

• Announced a JPY 40 billion share buyback program, increased by JPY 10 billion from the previous program, as part of Vision 2030.

• Operations at Kumamoto plant were temporarily suspended due to an earthquake; impact is being assessed.

Financial highlights

• Gross profit increased 3.4% year-over-year to JPY 189.6 billion, outpacing revenue growth.

• Business income surged 430.1% to JPY 8.1 billion, and net income reached JPY 4.8 billion, reversing a prior-year loss.

• Operating income rose by JPY 10.3 billion, cycling a prior year impairment loss.

• EBITDA for 1H was JPY 23.6 billion, down 2.1% year-over-year.

• Basic earnings per share was 29.12 yen, compared to a loss of 378.02 yen per share in the prior year.

Outlook and guidance

• On track to achieve full-year business income target of JPY 35 billion, with strong momentum entering the peak demand season.

• September price revision to cover 165 major items, raising suggested retail prices by 3.2%-18.7%.

• Cost impact from Middle East situation expected to be JPY 2-4 billion, to be offset by price revisions and cost savings.

• Annual dividend forecast raised to 72 yen per share.

• Confident in delivering 2027 business income target of JPY 45-50 billion through pricing, cost savings, and transformation.