Yakult Honsha (2267) Q4 2025 earnings summary

Executive summary

• Net sales and profit declined year-over-year, mainly due to lower dairy product sales in Japan, while overseas segments, especially the Americas, showed growth, aided by yen depreciation.

• New low-sugar Yakult 1000 series launched to address consumer concerns and drive domestic growth.

• The company advanced its global vision, launched new products, and restructured operations in China, including closing the Shanghai Plant.

• Shareholder returns prioritized, with dividend increases and share buybacks planned, targeting a 70% payout ratio and over JPY 100 billion in repurchases by FY2030.

Financial highlights

• Net sales decreased 0.7% year-over-year to JPY 499.6 billion; operating profit fell 12.6% to JPY 55.3 billion; net income attributable to owners of parent dropped 10.7% to JPY 45.5 billion.

• Operating profit margin declined to 11.1% from 12.6%.

• ROE dropped by 1.6 points to 8.1% year-over-year.

• Foreign exchange gains contributed JPY 10.8 billion to sales, but are not expected next year.

• Extraordinary income included gains on sales of non-current assets and investment securities; loss from Shanghai Plant closure.

Outlook and guidance

• FY2025 forecast: net sales to rise 1.3% to JPY 506.0 billion, operating profit up 5.6% to JPY 58.5 billion, and net income up 7.6%.

• EPS forecasted at JPY 167.13, up 11.1% year-over-year.

• ROE expected to recover to 8.6% next fiscal year.

• Sales and profit expected to increase in both Japan and overseas, despite anticipated yen appreciation.

• Annual dividend for FY2025 is planned at JPY 66 per share, up JPY 2 from FY2024.