Lifedrink Company (2585) Q2 2026 earnings summary

Executive summary

• Production volume increased 14% year-over-year, driven by contributions from Gotemba Factory, O Beverage, and full production at N Beverage.

• Revenue for the six months ended September 30, 2025, rose 19% year-over-year to ¥28,668 million, supported by expanded sales channels and higher production.

• Operating profit grew 16% year-over-year to ¥3,537 million, as increased revenue and cost reductions offset higher logistics, labor, and personnel costs.

• OBK Yamanakako Factory achieved single-month profitability; in-house bottle production construction completed, expected to further improve profits.

• Preparations for acquiring POKKA SAPPORO Food & Beverage's Gunma Factory and NBK line expansion are progressing smoothly.

Financial highlights

• Q2 FY2026 revenue: ¥28.7 billion, up 19% year-over-year.

• Operating profit: ¥3.54 billion, up 16% year-over-year; operating margin slightly decreased by 0.4pt to 12.3%.

• Net profit: ¥2.37 billion, up 14% year-over-year; EPS: ¥45.26 (reflecting a 4-for-1 stock split).

• EBITDA: ¥4.61 billion, up 17% year-over-year; EBITDA margin at 16.1%.

• Achievement rates against full-year forecast: 55% for revenue, 54% for operating profit, 53% for net profit.

• Gross profit for the period was ¥13,097 million, up from ¥10,483 million year-over-year.

• Total assets increased to ¥38,703 million as of September 30, 2025, from ¥33,207 million at March 31, 2025.

• Net assets rose to ¥15,561 million, with an equity-to-asset ratio of 40.2%.

Outlook and guidance

• Initiatives to increase production volume, including NBK line expansion and Gunma Factory acquisition, are on track for next fiscal year.

• Full-year revenue forecast for fiscal year ending March 31, 2026, is ¥52,000 million, up 16.8% year-over-year.

• Operating profit is projected at ¥6,500 million (+37.1%), ordinary profit at ¥6,400 million (+35.8%), and profit attributable to owners of parent at ¥4,450 million (+31.2%).

• Full-year EPS forecast is ¥85.14; EBITDA is expected to reach ¥8,600 million (+31.1%).

• Dividend forecast for FY2026 is ¥14.00 per share for both Q2 and year-end.

• Further profit improvement anticipated from in-house bottle production and operational efficiencies.

• Market price of green tea raw materials remains volatile at 4–8 times last year's level; mitigation efforts include procurement diversification and price revisions.