Sapporo Holdings cuts revenue forecast but raises profit outlook for 2025
The Japanese brewer lifted its profit forecast despite lower revenue expectations, supported by strong domestic beer sales and real estate gains.
JAPAN – Sapporo Holdings has revised its financial outlook for 2025, lowering its revenue forecast while raising its profit expectations, reflecting mixed business performance driven by domestic strength and overseas headwinds.
The brewer now projects annual revenue of Y523 billion (US$3.38 billion), representing a 1.7% decrease from its previous estimate in February.
Despite the downgrade in revenue, Sapporo raised its profitability targets, citing solid sales in Japan’s alcoholic beverage market and contributions from its real estate business.
The company now anticipates a core operating profit of Y29.5 billion (US$190.9M), marking a 20.4% increase from the earlier forecast. Operating profit is projected to rise 39% to Y27.8 billion (US$179.9M), while net profit is expected to reach Y16.5 billion (US$106.78M), up 49.6%.
Profit attributable to owners of the parent is also forecast at Y16.5 billion (US$106.78M), a 50% increase. Basic earnings per share (EPS) have been revised upward to Y211.62 from Y141.16.
Sapporo said that while revenue from its domestic alcoholic beverage segment should climb due to strong beer sales and recent price revisions, total revenue will be lower than earlier expectations because of weaker overseas sales and the yen’s appreciation.
The company added that profits will remain under pressure from reduced international sales but are still expected to exceed initial projections, supported by gains in Japan’s alcohol business and real estate income.
Sapporo also announced an increase in its dividend plan, revising its year-end payment to Y90 from the previously planned Y60.
The updates came alongside the company’s nine-month financial results to 30 September 2025. Revenue during the period reached Y382.58 billion, down 0.8% from the prior year.
Operating profit rose 10.8% to Y19.57 billion (US$126.66M), while profit for the period declined 5.7% to Y10.86 billion (US$70.29M). Basic earnings per share stood at Y139.72, down from Y147.66 a year earlier.
The Alcoholic Beverages division remained Sapporo’s largest revenue driver, generating Y283.82 billion (US$1.84B), up 0.8% year on year. Core operating profit rose 25.7% to Y16.2 billion (US$104.84M), supported by strong domestic beer sales and benefits from the April price adjustments.
Meanwhile, Food & Soft Drinks revenue declined 7.9% to Y79.4 billion (US$513.86M), impacted by structural business changes in Japan and a temporary shutdown at the Malaysia factory.
Despite this, core operating profit increased 53.6% to Y3.3 billion (US$21.36M), aided by cost reforms.
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