Lifedrink Company (2585) Q2 2027 earnings summary

Executive summary

• 1H FY2027 production volume rose 21% to 52.0m cases; revenue increased 26.4% to ¥36.234bn and operating profit rose 11.5% to ¥3.944bn.

• Profit attributable to owners declined 3.0% YoY to ¥2.294bn.

• Consolidated scope expanded by six companies during the period, including SD Next Co., Ltd.

Financial highlights

• Gross profit increased to ¥15,913m from ¥13,097m; SG&A rose to ¥11,969m from ¥9,560m.

• Ordinary profit increased 3.0% YoY to ¥3,577m; profit before income taxes rose to ¥3,553m from ¥3,438m.

• EBITDA increased 19% YoY to ¥5.504bn; EBITDA margin was 15.2%, down 0.9 points.

• EPS was ¥44.20 versus ¥45.26; diluted EPS was ¥44.14 versus ¥45.21.

• Comprehensive income declined to ¥2,099m from ¥2,424m, including H1 hedge losses of ¥194m versus gains of ¥58m a year earlier.

Outlook and guidance

• FY2027 forecast: revenue ¥72.0bn, operating profit ¥6.5bn, ordinary profit ¥6.18bn, attributable profit ¥4.2bn and EBITDA ¥10.0bn; 1H progress was 50%, 61%, 55%, 55% and 55%, respectively.

• FY2027 forecast EPS is ¥80.94; dividends are forecast at ¥15 per share, comprising ¥0 at Q2 and ¥15 at year-end, versus ¥14 per share in FY2026.

• Iwate Factory line renewal is planned to add 8m cases annually in 2H FY2028; subsidies of up to ¥1.4bn are expected.