Suntory Beverage & Food (2587) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of FY2025 was JPY 806.4 billion, down 1.3% year-over-year, with operating income at JPY 71.8 billion (down 11.2%) and net income attributable to owners at JPY 41.1 billion (down 11.5%).

• Declines were driven by macroeconomic downturns in Asia Pacific, higher raw material costs in Japan, and increased marketing expenses, partially offset by growth in Europe.

• Europe outperformed expectations, while Japan and the Americas were stable; APAC underperformed due to macroeconomic headwinds in Vietnam and Thailand.

• Growth initiatives and investments in core brands, new product launches, and infrastructure were actively pursued despite a challenging environment.

• The company continues to focus on core brands, cost management, and strategic initiatives under its medium-term plan.

Financial highlights

• Revenue for Jan–Jun 2025 was JPY 806.4 billion, down 1.3% year-over-year (currency effect included).

• Operating income was JPY 71.8 billion, down 11.2% year-over-year; organic operating income was JPY 74.5 billion, down 9.3%.

• Net income attributable to owners was JPY 41.1 billion, down 11.5% year-over-year.

• Gross profit for the period was JPY 307.4 billion, down from JPY 311.8 billion year-over-year.

• Basic earnings per share was JPY 133.13, compared to JPY 150.47 in the prior year.

Outlook and guidance

• Full-year 2025 revenue is forecast at JPY 1,796.0 billion (+5.8% year-over-year), with operating income of JPY 161.0 billion (+0.5%) and net profit attributable to owners of JPY 90.0 billion (-3.7%).

• Full-year guidance maintained despite first-half underperformance; management expects upside from favorable weather, price revisions, and marketing in the second half.

• Uncertainty remains high due to macroeconomic conditions in APAC, global recession risks, and FX/interest rate volatility.

• Recovery initiatives in Vietnam and Thailand are being accelerated.