Coca-Cola Bottlers Japan Holdings Inc.

For full-year 2025, business income was JPY 24.5 billion, more than double the previous year; business income increased by JPY 12.5 billion year over year. Revenue was broadly in line with the prior year and exceeded the revised October plan, while gross profit decreased by JPY 3.1 billion year over year. EBITDA rose by JPY 6.7 billion year over year to JPY 64.2 billion. Operating income and net income declined due to an impairment loss of JPY 88.4 billion in the Vending business recorded in Q2. For 2026, the company plans revenue of JPY 902.7 billion, up 1% year over year, business income of JPY 35 billion, EBITDA of JPY 70.1 billion, annual dividend per share of JPY 72, and completion of the second year of the JPY 30 billion share buyback program by October.

Calin Dragan framed 2025 as a strong proof point for the company’s strategy, saying business income beat forecast even after two upward revisions and that profitability improvements continued despite higher external costs. He emphasized that 2026 is the first year of Vision 2030 and should be a year of progress toward long-term goals, with more profit growth, higher shareholder returns, and a 20% dividend increase. He also highlighted confidence in the company’s ability to keep compounding earnings through commercial execution, transformation, and capital efficiency.

Bjorn Ulgenes walked through the financial bridge: revenue was flat year over year but above plan, gross profit fell by JPY 3.1 billion due to weaker channel mix and higher external costs, and business income increased by JPY 12.5 billion on top-line growth and transformation savings. He said transformation benefits reached JPY 6.9 billion in 2025, EBITDA rose to JPY 64.2 billion, and ROIC improved by 1.8 percentage points to 3%. For 2026, he outlined a revenue target of JPY 902.7 billion, gross profit growth of 4.3%, business income of JPY 35 billion, EBITDA of JPY 70.1 billion, and noted planned cost pressures from logistics, outsourcing, investments in data/tech, and a JPY 60 billion bond repayment due in September.

Analysts pressed management on what underpins its confidence in the 2027 JPY 45 billion to JPY 50 billion target and the longer-term Vision 2030 plan. Management answered that confidence comes from clear KPIs, strong commercial execution across the three business units, transformation gains already visible in 2025, and a strong balance sheet supporting dividends and buybacks. Questions also focused on how 2026 can deliver the planned profit step-up despite volume pressure from price revisions and channel mix; management said the plan relies on price/mix improvement, disciplined trade spending, ongoing transformation, and offsetting inflation through manufacturing and logistics productivity. Food Service was called out as a growth area, with management saying its strength comes from better data use, stronger sales capabilities, closer customer partnerships, and sharing learnings across business units.