Sanrio Company (8136) Q1 2026 earnings summary

Executive summary

• Consolidated net sales for Q1 FY3/2026 reached ¥43.1B, up 49.1% YoY, with record operating profit of ¥20.2B, driven by strong product sales, licensing, and character marketing in Japan and overseas, especially China.

• Net profit attributable to owners was ¥14.2B, up 37.8% YoY, with growth supported by domestic stores, theme parks, and robust licensing in North America and China.

• Anniversary campaigns, collaborations, and successful marketing initiatives contributed to strong domestic and international performance.

• Full-year forecasts and annual dividend were raised due to strong Q1 results.

Financial highlights

• Q1 FY3/2026 sales: ¥43.1B (up 49.1% YoY); operating profit: ¥20.2B (up 88.0% YoY); net profit: ¥14.2B (up 37.8% YoY).

• Gross profit margin improved to 80.7% (up 4.1pt YoY); EBITDA margin rose to 48.3% (up 9.4pt YoY); OP margin reached 46.9% (up 9.7pt YoY).

• Ordinary profit reached ¥20.2B, up 72.6% YoY; basic EPS rose to ¥59.80 from ¥43.60 YoY.

• Equity ratio improved to 56.4% (up 3.5pt YoY); net cash position at ¥76.6B.

• SG&A expenses increased 27.7% YoY, mainly due to higher personnel and marketing costs.

Outlook and guidance

• Full-year FY3/2026 sales forecast raised to ¥168.8B (up 16.5% YoY); operating profit forecast to ¥67.3B (up 29.9% YoY); net profit forecast to ¥47.5B.

• Basic EPS forecast at ¥199.38 for the full year.

• Upward revision reflects only first-half results due to uncertainty over U.S. tariff policies; second-half forecast maintained.

• Annual dividend forecast raised to 60 yen per share.