Company DescriptionSapporo Holdings Limited engages in alcoholic beverages, foods and soft drinks, restaurants, and real estate businesses in Japan and internationally. It operates through Alcoholic Beverages, Food & Soft Drinks, and Real Estate segments. The company manufactures and sells beer, wine, other alcoholic beverages, foods, sundries, shochu, other food products; operates restaurants and factories; and lemon-based flavor, soft drinks, soups, and soybeans and chilled products, as well as provides consigned freight forwarding, cargo handling, warehousing, packaging, and distribution services. It also manufactures, markets, and sells beverages and food products; imports, processes, manufactures, and sells spices, herbs, and dehydrated vegetables; operates vending machines and café chain; serves tea; and manufactures and sells ice cream, miso, instant miso soup, and freeze-dried products. In addition, the company engages in the development, leasing, rental, and sale of real estate properties; and provision of utility services. As of March 31, 2021, it operated 163 restaurant outlets. The company sells its beer products under the Black label, Yebisu, GOLD STAR, and Mugi to Hop brand names. Sapporo Holdings Limited was founded in 1876 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sapporo Holdings Financial Statement Overview

Summary

Sapporo Holdings shows solid revenue growth and operational efficiency, but faces challenges with free cash flow and net profit margins. Maintaining balanced leverage and improving profitability are key to sustaining growth.

Income Statement

Positive

Sapporo Holdings has demonstrated a solid revenue growth rate of 2.34% from 2023 to 2024, contributing to a robust gross profit margin of 31.07%. The net profit margin, although relatively low at 1.45%, is improving. The EBIT margin of 4.15% and EBITDA margin of 6.22% reflect stable operational efficiency, though there is room for enhancing profitability.

Balance Sheet

Positive

The company's debt-to-equity ratio of 1.21 shows moderate leverage, indicating a balanced use of debt and equity. Return on equity at 3.93% suggests a modest return to shareholders. The equity ratio of 29.49% indicates a reasonable level of equity financing, although a higher ratio could provide greater stability against liabilities.

Cash Flow

Positive

Sapporo Holdings has faced challenges with free cash flow, which declined significantly, showing a negative growth rate of -31.78% from 2023 to 2024. The operating cash flow to net income ratio of 4.68 indicates strong cash generation relative to net income, but the free cash flow to net income ratio of 2.39 suggests pressure on free cash flow generation.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
536.70B	530.78B	518.63B	478.42B	437.16B	434.72B
	Gross Profit
167.90B	164.92B	156.84B	139.24B	133.78B	132.13B
	EBIT
23.11B	22.04B	17.32B	10.11B	22.03B	-14.94B
	EBITDA
35.26B	37.48B	36.22B	34.38B	45.43B	9.11B
	Net Income Common Stockholders
5.47B	7.71B	8.72B	5.45B	12.33B	-16.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.42B	24.14B	21.60B	23.83B	21.35B	25.19B
	Total Assets
634.25B	664.96B	663.57B	639.12B	594.55B	616.35B
	Total Debt
238.34B	236.58B	245.62B	263.20B	220.07B	268.15B
	Net Debt
215.92B	212.44B	228.42B	247.82B	202.70B	248.42B
	Total Liabilities
448.98B	467.81B	480.32B	471.92B	431.22B	466.80B
	Stockholders Equity
184.19B	196.03B	182.31B	166.31B	162.57B	149.78B
Cash Flow		Free Cash Flow
23.63B	18.44B	27.02B	-1.81B	17.12B	3.95B
	Operating Cash Flow
39.72B	36.11B	45.45B	7.81B	30.31B	16.47B
	Investing Cash Flow
1.60B	-5.84B	-16.44B	-46.14B	20.73B	-16.00B
	Financing Cash Flow
-36.22B	-25.37B	-27.14B	36.47B	-53.08B	4.14B

Sapporo Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOOBF		$3.92B	110.98	2.87%	0.68%	―	―
Sector *	65 Neutral	$8.88B	15.01	4.76%	203.76%	3.54%	-2.49%
ASBRF		$19.89B	16.33	7.40%	2.37%	―	―
CCOJF		$2.95B	121.04	0.85%	2.07%	―	―
KNBWF		$11.60B	28.11	4.91%	3.58%	―	―
STBFF		$9.90B	17.02	7.61%	2.26%	―	―
2590	70 Outperform	¥86.61B	23.09		1.49%	8.00%	-127.55%

* Consumer Defensive Sector Average

Performance Comparison

SOOBF

Sapporo Holdings

50.53

15.11

42.66%

ASBRF

Asahi Group Holdings

13.44

1.28

10.53%

CCOJF

Coca-Cola Bottlers Japan Holdings

16.60

4.62

38.56%

KNBWF

Kirin Holdings Company

12.85

-0.81

-5.93%

STBFF

Suntory Beverage & Food

32.11

-3.10

-8.80%

JP:2590

DyDo Group Holdings, Inc.

2,689.00

58.05

2.21%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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