Sanrio Company (8136) Q2 2025 earnings summary

Executive summary

• Achieved record-high quarterly operating profit in 2Q FY3/2025, driven by Hello Kitty's 50th anniversary and broad character merchandising strategy.

• Net sales rose 43.0% YoY to ¥62.8B for 1H FY3/2025, with strong domestic and overseas licensing, especially in North America and China.

• Operating profit increased 77.3% YoY to ¥23.6B, with improved profitability from a higher licensing business mix.

• Upward revision to full-year forecasts, reflecting strong 1H performance and continued global demand.

• Inbound tourism and domestic demand boosted Japan sales, while North America and China led overseas growth.

Financial highlights

• 1H FY3/2025 sales: ¥62.8B, up 43.0% YoY; operating profit: ¥23.6B, up 77.3% YoY; net profit: ¥19.1B, up 81.6% YoY.

• 2Q operating profit reached a record ¥12.8B; OP margin rose to 37.6% from 30.3% YoY.

• EBITDA for 1H: ¥24.1B, up 75.1% YoY; EBITDA margin improved to 38.4%.

• Net cash increased to ¥53.6B, equity ratio improved to 49.0%.

• Total assets grew to ¥171.7B as of September 30, 2024, up from ¥156.1B at March 31, 2024.

Outlook and guidance

• Revised FY3/2025 full-year sales forecast to ¥130.6B (+30.6% YoY), operating profit to ¥41.0B (+53.1% YoY), and net profit to ¥31.1B (+76.9% YoY).

• 2H operating profit expected to be relatively weaker due to higher SG&A, including strategic investments and accounting period differences.

• Dividend per share forecast for FY2024 is ¥66.00, reflecting a 3-for-1 stock split.

• 2H plans include local marketing in Europe/Americas and anti-infringement campaigns in China.