LIFEDRINK COMPANY,INC.

Business Details

The Group is a single-segment company engaged in the manufacture, procurement, and sale of soft drinks (Drink) and tea leaves (Leaf). Its three pillars are: high-volume production of a limited number of product varieties focused on water beverages, tea-based beverages, and carbonated beverages; in-house integration from raw material procurement through sales; and a nationwide network of factories stretching from Iwate Prefecture to Miyazaki Prefecture. These enable it to achieve high quality, low prices, and stable supply. It continuously supplies both private brand (PB) products and its own branded products to major retailers such as general merchandise stores, supermarkets, discount stores, and drugstores. Net sales for the consolidated fiscal year (April 1, 2025 to March 31, 2026) were ¥52,651 million (up 18.2% year on year).

Recent Overview

Achieved net sales of ¥52,651 million, up 18.2%. Laying the groundwork for next-period growth through large-scale capital expenditure and the vending machine business M&A.

In the fiscal year ended March 2026, the company achieved net sales of ¥52,651 million (up 18.2% year on year), operating profit of ¥5,326 million (up 12.3%), and EBITDA of ¥7,532 million (up 14.8%). On the other hand, selling, general and administrative expenses increased to ¥18,543 million (up 26.0% year on year), causing the operating profit margin to decline to 10.1% (from 10.6% in the prior year). Expenditures for acquisition of property, plant and equipment surged to ¥13,225 million (from ¥3,424 million in the prior year), and construction in progress expanded to ¥6,197 million (from ¥1,398 million in the prior year). In financing activities, short-term borrowings increased by a net ¥6,937 million, and the equity ratio declined to 35.0% (from 42.9% in the prior year). As a subsequent event, the company made SD Next and SD Bottlers subsidiaries effective April 1, 2026, at an acquisition cost of ¥3,332 million, entering the vending machine business. For the fiscal year ending March 2027, the company forecasts net sales of ¥72,000 million (up 36.7% year on year) and EBITDA of ¥10,000 million (up 32.8%).

Key Products

Growth Drivers

• Enhanced production capacity through the launch of the new Gotemba factory and line additions at existing factories (large-scale investment reflected in construction in progress of ¥6,197 million)
• Expansion of direct channels through the acquisition of production sites via M&A and the consolidation of the vending machine business (SD Next, SD Bottlers) as subsidiaries
• Expansion of EC/D2C channels ("OZA SODA" ranked No. 1 in Rakuten's annual rankings for four consecutive years)
• Maintaining profitability through product price revisions, including responses to rising tea leaf prices
• Cost reduction and productivity improvement through in-house PET bottle production, weight reduction, and labor-saving measures
• Securing sales outlets for both PB and own-brand products through deepened partnerships with retailers

Risks

• Rising manufacturing costs due to persistently high raw material and supply prices and surging raw tea leaf prices (pressuring operating profit margin)
• Financial leverage risk from a sharp increase in borrowings and a decline in the equity ratio (35.0%) accompanying large-scale capital expenditure (¥13,225 million in acquisition of property, plant and equipment)
• Risk of revenue concentration in specific products and customers stemming from the high-volume, limited-variety production model
• Risk of delayed PMI (post-merger integration process) or failure to achieve synergies following M&A, including the vending machine business (SD Next, SD Bottlers)
• Impact on imported raw material costs due to foreign exchange market movements
• Continued increase in capital expenditure burden associated with nationwide factory expansion and new factory construction
• Risk of market contraction in the domestic beverage market due to the declining birthrate, aging population, and population decline