Coca-Cola Bottlers Japan Holdings Inc.

For 2025, revenue remained broadly in line with the prior year and exceeded the revised plan; business income was JPY 24.5 billion, more than double the prior year, and adjusted business income excluding cumulative impacts since 2017 exceeded JPY 50 billion and reached a record high. Gross profit decreased by JPY 3.1 billion year over year, business income increased by JPY 12.5 billion year over year, operating income and net income declined because of an impairment loss of JPY 88.4 billion in the Vending business, and EBITDA rose by JPY 6.7 billion to JPY 64.2 billion. For 2026, the company guided to revenue of JPY 902.7 billion, up 1%; sales volume down 1.5%; gross profit up 4.3%; business income of JPY 35 billion; EBITDA of JPY 70.1 billion; ROIC of 4% or higher; and annual dividend per share of JPY 72, up 20% year over year.

Calin Dragan framed 2025 as a strong year of execution, saying the company exceeded forecasts even after two upward revisions and achieved a positive cycle of profit growth and shareholder returns. He stressed that 2026 is the first year of Vision 2030 and a crucial stepping stone toward larger long-term goals, with a focus on further profit growth, higher capital efficiency, and expanded returns. His tone was confident and forward-looking, especially around the JPY 35 billion 2026 business income target and the longer-term ambition for more than JPY 80 billion.

Bjorn Ulgenes emphasized that profitability improvement measures worked well in 2025, with sales volume outperforming a declining market and revenue exceeding the revised plan. He cited the key financial drivers: JPY 18.8 billion of positive pricing impact, JPY 6.9 billion of transformation benefits, JPY 3.1 billion lower gross profit from weaker mix and higher external costs, and JPY 88.4 billion of impairment in Vending that hit operating and net income. For 2026, he pointed to JPY 902.7 billion in revenue, JPY 35 billion in business income, JPY 70.1 billion in EBITDA, JPY 6 billion of annual transformation savings, JPY 60 billion of corporate bond repayments due in September, and ROIC improving from 3% in 2025 to 4% or higher.

Analysts pressed management on why it is so confident about the JPY 45 billion to JPY 50 billion 2027 target and whether the 2026 plan is achievable given weak market conditions and heavy price-revision effects. Management said confidence comes from clear targets and KPIs, strong execution across the three business units, transformation gains already visible in 2025, and a strong balance sheet supported by dividends and buybacks. Another focus was Food Service, where management said growth is being driven by better data use, stronger sales capabilities, closer customer partnerships, and cross-learning with OTC and Vending; on costs, management said ‘others’ includes inflation, logistics and outsourced expenses, and investments in data and technology, while DME spending will stay ROI-focused.