Lifedrink Company (2585) Q1 2025 earnings summary

Executive summary

• Production quantity increased by 9% year-over-year, driven by improved operating rates, expanded capacity at Nitto Beverage, and the launch of the Gotemba factory.

• Revenue for the three months ended June 30, 2024, was ¥11,308 million, up 13% year-over-year, due to higher production and price adjustments.

• Operating profit declined by 11% year-over-year to ¥1,244 million, impacted by fixed costs at the new Gotemba factory and M&A-related expenses.

• Net profit attributable to owners of parent was ¥851 million, down from ¥947 million year-over-year.

• Progress toward the full-year performance forecast is generally on track, with new facilities and M&A integration advancing as planned.

Financial highlights

• Q1 FY2025 revenue: ¥11.3 billion, up 13% year-over-year.

• Operating profit: ¥1.24 billion, down 11% year-over-year; margin fell from 14.1% to 11.0%.

• Net profit: ¥851 million, down 10% year-over-year; EPS decreased from ¥73.06 to ¥65.22.

• EBITDA: ¥1.63 billion, down 3% year-over-year; EBITDA margin declined from 17.0% to 14.4%.

• Gross profit increased to ¥4,846 million from ¥4,244 million year-over-year.

Outlook and guidance

• Q1 progress rates: revenue at 26%, operating profit and net profit at 22% of full-year forecasts.

• Full-year FY2025 revenue forecast is ¥44,000 million (+15.1%), operating profit ¥5,750 million (+22.0%), and net profit ¥3,850 million (+22.0%).

• EBITDA for FY2025 is projected at ¥7,500 million, up 28.4% year-over-year.

• Earnings per share forecast for FY2025 is ¥73.32, reflecting a planned 1:4 stock split.

• Management expects continued progress toward full-year targets as new production lines ramp up and M&A synergies are realized.