Sanrio Company (8136) Q1 2025 earnings summary

Executive summary

• Achieved record-high quarterly operating profit in 1Q FY3/2025, driven by strong global demand for character products and licensing, especially Hello Kitty's 50th anniversary, Sanrio Character Ranking event, and successful marketing initiatives.

• Both sales and profit increased significantly year-over-year, with robust performance in Japan and overseas, particularly North America and China, fueled by increased foreign tourism and higher licensing revenue.

• Upward revision of full-year forecasts and dividend, reflecting continued favorable trends and strong quarterly results.

• Comprehensive income increased to ¥12.8 billion, up from ¥4.5 billion a year earlier.

Financial highlights

• 1Q FY3/2025 sales: ¥28.9 billion, up 42.3% YoY; operating profit: ¥10.7 billion, up 80.2% YoY; net profit: ¥10.3 billion, up 109.4% YoY.

• Gross profit margin rose to 38.9% (from 31.6% YoY); operating profit margin improved to 37.2%.

• EBITDA reached ¥11.2 billion, up 75.4% YoY.

• Ordinary profit rose 83.6% YoY to ¥11.7 billion.

• Basic EPS for the quarter was ¥43.60, reflecting a 3-for-1 stock split effective April 1, 2024.

Outlook and guidance

• Full-year FY3/2025 sales forecast revised to ¥119.3 billion (+19.3% YoY); operating profit to ¥37.1 billion (+37.6% YoY); net profit to ¥28.7 billion.

• Dividend per share raised to ¥37 (from ¥27), and FY2024 dividend forecast set at ¥66.00 per share (post-split basis).

• Expectation of continued strong performance, especially in North America and China, with focus on brand value and anti-infringement measures in China.

• Launch of new medium-term management plan targeting ¥40 billion operating profit by FY2027.