Sanrio Company (8136) Q2 2026 earnings summary

Executive summary

• Consolidated net sales and operating profit for 1H FY3/2026 exceeded forecasts, reaching record highs, driven by strong domestic and overseas performance, especially in Japan and China.

• Growth was fueled by robust licensing, increased theme park attendance, and successful global marketing strategies.

• Strategic collaborations, including with Expo 2025 Osaka Kansai, and alliances with IG Port and Gugenka Inc., enhanced digital and content capabilities.

• Upward revision of full-year forecasts: sales now expected at ¥184.3B (+27.2% YoY), operating profit at ¥70.2B (+35.5% YoY).

• Multi-character strategies and global initiatives contributed to record performance.

Financial highlights

• 1H FY3/2026 sales: ¥87.7B (+39.6% YoY); operating profit: ¥39.2B (+66.1% YoY); net profit attributable to owners: ¥27.5B (+44.3% YoY).

• Gross profit margin improved to 80.4% (+3.4pt YoY); EBITDA margin rose to 46.1% (+6.9pt YoY); OP margin reached 44.7% (+7.1pt YoY).

• Ordinary profit reached ¥39.7B, up 64.1% YoY; basic EPS rose to ¥115.21 from ¥80.77 YoY.

• SG&A expenses increased 26.3% YoY, mainly due to personnel and marketing investments.

• Interim dividend increased to ¥31 per share, with full-year dividend forecast raised to ¥62 per share.

Outlook and guidance

• Full-year sales forecast raised to ¥184.3B (+27.2% YoY), operating profit to ¥70.2B (+35.5% YoY), and adjusted operating profit to ¥69.6B (+25.1% YoY).

• Profit attributable to owners of parent expected to reach ¥49.4B, up 18.4% YoY.

• Annual dividend increased to ¥62 per share (interim: ¥31, year-end: ¥31).

• SG&A expenses expected to rise in 2H; potential downside from U.S. tariff policies considered.

• Guidance reflects continued strong global demand and strategic SG&A investments.