HOKKAIDO COCA-COLA BOTTLING CO.,LTD.

Business Details

A single-segment business in which the Hokkaido Coca-Cola Bottling Co., Ltd. group manufactures and sells beverages across the entire Hokkaido region. The company handles the sales business, while subsidiaries handle manufacturing, transportation, vending machine operations, and equipment maintenance, forming a vertically integrated group structure. The group operates across multiple channels including mass retailers, restaurants, vending machines, and web sales, offering a wide range of categories centered on the Coca-Cola brand, including Japanese tea, fruit juice, and alcoholic beverages.

Recent Overview

Q1 net sales rose 5.6% year on year to ¥13,409 million, with net income up 12.0%, reflecting higher revenue and profit

In the first quarter of FY2026 (ending December 2026) (January to March 2026), the company achieved net sales of ¥13,409 million (up 5.6% year on year), driven by the effects of price revisions and area-focused activity enhancements. Convenience store, restaurant, and web sales channels showed substantial growth, and the vending machine channel also maintained growth despite an industry-wide downtrend. Amid continued sharp increases in raw material, supply, and energy prices, ongoing profitability improvement efforts secured operating profit of ¥275 million (up 2.9% year on year) and quarterly net income attributable to owners of parent of ¥172 million (up 12.0% year on year). The full-year earnings forecast (net sales of ¥60,400 million, operating profit of ¥2,100 million) remains unchanged, and the forecast for a 20.0% year-on-year decline in full-year operating profit due to investments in manufacturing base reinforcement and other factors has also been maintained.

Key Products

Growth Drivers

• Higher unit prices from the effects of price revisions (price increases on PET bottle, can, and syrup products effective from October 2025 shipments)
• Continued growth in convenience store, restaurant, and web sales channels
• Strengthened area-focused sales through fixed-shelf placement and enhanced visibility of flagship and Hokkaido-exclusive products at mass retailers
• New customer development through enhanced proposal activities for new products aimed at restaurants (e.g., Ayataka Bancha 2L PET, Georgia Fukami Roast series)
• Securing favorable vending machine locations and promoting machine replacement by leveraging synergies with the group business
• Differentiation and demand creation through the rollout of Hokkaido-exclusive products (e.g., Ayataka Bancha series)

Risks

• Continued pressure on profitability from rising costs of raw materials, supplies, and energy
• Temporary cost increases in FY2026 (ending December 2026) from investment in manufacturing base reinforcement lines and replacement of sales equipment (full-year operating profit forecast down 20.0% year on year)
• Worsening labor shortages due to a declining working population
• Impact on the number of installed vending machines and utilization rates from the industry-wide downtrend in the vending machine business
• Concerns over sharp increases in crude oil and other energy prices amid heightened tensions in the Middle East, and an uncertain economic outlook
• Rising costs to address DX, cybersecurity, and natural disaster risks