Coca-Cola Bottlers Japan Holdings (2579) Q3 2025 earnings summary

Executive summary

• Business income reached ¥24.5 billion YTD, 1.7 times higher year-on-year, exceeding the revised plan, driven by price revisions, cost savings, and digital transformation initiatives.

• Revenue for the nine months ended September 30, 2025, increased 1.0% year-on-year to ¥683.5 billion, despite a 1% decline in sales volume, outperforming the overall market.

• Shareholder returns expanded with a 6.5% treasury share cancellation, a 10% dividend increase, and new buyback programs totaling up to ¥150 billion aligned with Vision 2030.

• Operating income turned to a loss of ¥70.1 billion due to a non-cash impairment loss in the vending business and other transformation-related costs.

Financial highlights

• Revenue grew 1% year-on-year to ¥683.5 billion, driven by higher wholesale revenue per case after price revisions, despite lower sales volume.

• Gross profit increased by YTD ¥2.4 billion year-on-year to ¥306.0 billion, with business income up YTD ¥9.8 billion.

• EBITDA rose to ¥55.6 billion (+13.8% YoY); Q3 net income attributable to owners was ¥17.2 billion (+66.4% YoY).

• Operating and net income decreased due to an ¥88.1–89.3 billion impairment loss in the vending business in Q2.

• Basic loss per share was ¥(282.35), compared to earnings per share of ¥55.79 in the prior year.

Outlook and guidance

• Full-year business income forecast raised to ¥24.0 billion, double last year and 20% above the original plan.

• Full-year revenue projected at ¥887.9 billion, a 0.5% decrease year-on-year due to volume and channel mix.

• Net loss for FY2025 is projected at ¥49.4 billion, with basic loss per share of ¥(288.59).

• Additional price revisions for green tea products planned for Q1 2026 in response to rising tea leaf costs.

• October sales volume showed mid-single-digit growth, outpacing the market.