Key Positives From The Results
On a 3Q cumulative basis, operating income came in at JPY 4,181M (+29.2% YoY), beating the plan disclosed on 9/25 by +12.4% on the profit line. Earnings upside was driven by two engines: (1) cost reductions and price pass-through in the Alcoholic Beverages & Soft Drinks business, and (2) improved profitability from higher RevPAR in the Tourism & Hotel business. Full-year operating income guidance was raised by +5.4% from JPY 3,945M to JPY 4,160M, marking the first upward earnings revision since listing.
- EBITDA Margin (Ex-Liquor Tax): 27.9% (25.0% a year ago, +2.9pt). Driven by manufacturing process optimization, energy-saving benefits from new equipment, and a timing shift of advertising & promotion expense into 4Q
- Alcoholic Beverages & Soft Drinks Revenue (Ex-Liquor Tax): JPY 14,615M (+8.7% YoY), EBITDA JPY 3,988M (+16.3% YoY). The licensing business sustained high growth at +150.8% YoY
- Overseas Revenue: +29.9% YoY. Australia and the Americas were solid; Korea expanded sharply at +92.0% YoY. The overseas CAGR (FY19-25) of 30.9% remains intact
- Tourism & Hotel EBITDA Margin: 29.7% (23.7% a year ago, +6.0pt). RevPAR rose to JPY 33,746 (JPY 30,747 a year ago). Increased lodging demand associated with the opening of Junglia Okinawa contributed
- Gain On Sale Of Orion Hotel Naha: Recorded special gain of JPY 1,055M. Progressed initiatives to improve asset efficiency and concentrate management resources on the northern resort area
Key Concerns From The Results
Revenue was JPY 23,570M, a slight miss at 99.6% versus the plan disclosed on 9/25. Stock-outs of procured products due to an Asahi GHD system outage impacted both in-prefecture and out-of-prefecture sales, prompting a downward revision to full-year revenue guidance from JPY 30,106M to JPY 29,683M (▲1.4%). While the factor is temporary, it highlighted the risk of external dependency in sales channels.
- Full-Year Revenue Impact From The Asahi GHD System Outage: Estimated at approximately ▲JPY 500M. Order intake and shipments for out-of-prefecture beer (cans) were halted, concentrated in 3Q; delays/cancellations of limited products also occurred
- In-Prefecture Alcohol Revenue: ▲1.7% versus plan. A pull-forward ahead of price hikes and subsequent reactionary decline, combined with stock-outs of procured products, weighed
- Out-Of-Prefecture Alcohol Revenue: ▲2.6% versus plan. Weak beer (cans) for mass retailers plus a timing shift in RTD initiatives were factors
- 4Q Guidance: Assumes an operating loss (▲JPY 20M). In addition to seasonally lower revenue, the plan reflects timing shifts for certain costs and scheduled maintenance/renovation expenses
- Okinawa-Only Reduced Liquor Tax Rate For Beer-Type Beverages: Scheduled to be abolished in October 2026. Monitor implications for medium- to long-term price competitiveness
Focus Areas / Items To Monitor Going Forward
- Recovery progress from the Asahi GHD system outage. As of January 2026, monthly in-prefecture sales recovered to 70–80%, and flagship “The Draft” resumed order-taking on 11/21; the degree of full recovery in 4Q will directly impact the full-year landing
- Pricing strategy and cost actions ahead of the abolition of Okinawa-only reduced liquor tax measures in October 2026. With ~70% of revenue mix in-prefecture, the balance between price pass-through and demand retention will be critical
- Renovation benefits at Orion Hotel Motobu (The Orion Brasseries & Table: opening May 2026; The Store & Journey: opening March 2026) and the incremental upside potential for RevPAR and spend per guest
- Timing for a full recovery from the Asahi GHD system outage, and a quantitative estimate of revenue recovery uplift from restarting limited products (planned for May)
- Specific pricing strategy for the October 2026 abolition of the liquor tax reduction measures (size of price increases, timing, acceleration measures to shift mix to out-of-prefecture/overseas, etc.)
- Sustainability of the 30.9% overseas revenue CAGR. A concrete roadmap for European expansion following the start of licensed production in the UK
- Growth runway for the licensing business (+150.8% YoY). Progress in acquiring overseas licensees and mid-term revenue targets
- Competitive landscape in the out-of-prefecture RTD market and positioning of WATTA/natura. Out-of-prefecture sales strategy following the launch of new product “Shima-Chu”
- Quantifying the impact from the opening of Junglia Okinawa: customer referrals to Orion Hotel Motobu and profit contribution from exclusive alcoholic beverage supply rights
- Capital policy after the cancellation of 13,750,200 treasury shares: which will determine near-term dividends—DOE 7.5% policy or 50% payout ratio
- View on the increase in Net D/E ratio to 0.41x (0.20x at prior FY-end) and the forward debt repayment plan
- Scale/timing of Nago plant renewal capex and a quantitative outlook for productivity gains
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 23,570M | +4.6% |
| └ Revenue (Ex-Liquor Tax) | JPY 19,263M | +5.7% |
| Cost of Goods Sold | JPY 11,139M | - |
| Gross Profit | JPY 12,431M | - |
| SG&A | JPY 8,250M | - |
| Operating Income | JPY 4,181M | +29.2% |
| Recurring Profit | JPY 4,015M | +20.5% |
| Special Gain | JPY 1,055M | - |
| Net Income before tax | JPY 5,018M | - |
| Net Income Attributable to Owners of Parent Company | JPY 3,496M | +55.0% |
| [Reference] Adjusted Net Income | JPY 2,832M | +23.1% |
| EPS | JPY 85.53 | +106.9% |
| [Reference] Adjusted EPS | JPY 69 | +64.2% |
| EBITDA | JPY 5,367M | +17.7% |
| Dividend Per Share (Interim) | JPY 20.00 | - |
（Note）YoY figures are based on reference values shown in the earnings presentation materials. As prior-year 3Q consolidated financial statements were not prepared, the growth rates are reference values. Special gain comprises gain on sale of fixed assets related to the sale of Orion Hotel Naha of JPY 846M + reversal of asset retirement obligations of JPY 208M. Adjusted net income is calculated on the basis of an assumed tax rate of 30% and excludes one-off factors such as special gains/losses.
Performance By Business Segment
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Alcoholic Beverages & Soft Drinks | JPY 18,922M | +6.5% | JPY 3,408M | +16.9% | 18.0% |
| Tourism & Hotel | JPY 4,647M | ▲2.7% | JPY 780M | +137.5% | 16.8% |
| Adjustments | - | - | ▲JPY 7M | - | - |
| Total | JPY 23,570M | +4.6% | JPY 4,181M | +29.2% | 17.7% |
- Overseas: revenue JPY 1,975M (+29.9% YoY, +4.9% versus plan). Expanded retail distribution for The Draft in Australia and the Americas; Korea +92.0% YoY on strengthened positioning in premium products
- Licensing business: revenue JPY 256M (+150.8% YoY, +48.7% versus plan). ~60 licensing contracts and ~1,000–1,500 product rollouts. Active collaboration product launches and out-of-prefecture pop-up stores were effective
- Tourism & Hotel (Profitability): EBITDA JPY 1,379M (+21.8% YoY, +12.4% versus plan). Higher RevPAR from stronger revenue management and Junglia opening impact, plus variable cost control and no typhoon-related disruptions, drove profit growth
- Other (Factory-adjacent restaurant / in-hotel shops): revenue JPY 239M (+92.0% YoY, +23.1% versus plan)
- In-prefecture alcohol: revenue JPY 12,114M (+3.6% YoY, ▲1.7% versus plan). Impacted by the post pull-forward reaction ahead of price increases and stock-outs of procured products tied to the Asahi GHD system outage
- Out-of-prefecture alcohol (incl. EC): revenue JPY 3,966M (+4.6% YoY, ▲2.6% versus plan). Shipment suspension of beer (cans) to mass retailers due to the system outage and a timing shift in RTD initiatives weighed
Progress Versus Full-Year Guidance
On a 3Q cumulative basis, operating income progress stands at 100.5%, already above the revised full-year plan. Revenue progress of 79.4% is tracking well when considering 4Q seasonality (off-peak quarter). EBITDA progress is 93.3%; against the full-year plan of JPY 5,750M, only JPY 383M remains, indicating high visibility on achievement. Net income is JPY 3,496M, already exceeding the full-year plan of JPY 3,472M at 100.7%. That said, 4Q assumes an operating loss of ▲JPY 20M, reflecting a conservative plan incorporating cost timing shifts (advertising & promotion) and renovation expenses.
| Item | Value (3Q Cumulative) | Full-Year Forecast | Progress Rate |
|---|---|---|---|
| Revenue | JPY 23,570M | JPY 29,683M | 79.4% |
| Operating Income | JPY 4,181M | JPY 4,160M | 100.5% |
| Recurring Profit | JPY 4,015M | JPY 3,957M | 101.5% |
| Net Income | JPY 3,496M | JPY 3,472M | 100.7% |
| EBITDA | JPY 5,367M | JPY 5,750M | 93.3% |
- 4Q is the off-peak tourism season in Okinawa and typically the lowest quarter of the year for both alcoholic beverages and hotels. 4Q revenue (company plan) is JPY 6,112M (~21% of full-year), with operating income expected to be a loss of ▲JPY 20M
- 2Q is the peak season, driven by summer tourism and peak beer demand, resulting in the highest revenue and profit
Changes To Guidance
On 10 February 2026, the company revised full-year consolidated guidance. Revenue was revised down, while profit was revised up at every line. While the revenue impact from the Asahi GHD system outage cannot be fully absorbed, earnings growth is secured through cost reductions and improved hotel profitability.
- Revenue: previous JPY 30,106M → new JPY 29,683M (▲1.4%)
- Operating Income: previous JPY 3,945M → new JPY 4,160M (+5.4%)
- EBITDA: previous JPY 5,520M → new JPY 5,750M (+4.2%)
- Recurring Profit: previous JPY 3,788M → new JPY 3,957M (+4.4%)
- Net Income: previous JPY 3,306M → new JPY 3,472M (+5.0%)
- Revision Rationale: Alcoholic Beverages & Soft Drinks saw revenue ▲JPY 491M (impact from Asahi GHD system outage) but operating income +JPY 65M (COGS reductions, energy-saving benefits, strong licensing). Tourism & Hotel saw revenue +JPY 68M (Junglia opening impact and RevPAR improvement) and operating income +JPY 149M (variable cost control and absence of typhoon-related disruptions)
Commentary On Shareholder Returns
No change to dividend guidance. For FY ending March 2026, the company will maintain the annual dividend at JPY 40 (interim JPY 20, year-end JPY 20). The dividend policy is to adopt the higher of “payout ratio of 50%+” and “DOE of 7.5%+.” Based on full-year EPS guidance of JPY 83.99, the payout ratio is 47.6%. Under the DOE standard, a higher dividend level could be derived. Note the company has already cancelled 13,750,200 treasury shares (equivalent to JPY 11B) in June 2025.
Financial Position
Total assets decreased by ▲JPY 7,438M versus prior FY-end due to the sale of Orion Hotel Naha and dividend payments. Meanwhile, the equity ratio improved by +4.3pt from 37.3% to 41.6%, enhancing financial stability. Interest-bearing debt is primarily long-term borrowings, with repayments proceeding in a planned manner.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Total Assets | JPY 43,436M | ▲14.6% versus prior FY-end |
| └ Total Current Assets | JPY 15,224M | ▲16.2% versus prior FY-end |
| └ Total Non-Current Assets | JPY 28,211M | ▲13.8% versus prior FY-end |
| Cash and Cash Equivalents | JPY 9,246M | ▲30.0% versus prior FY-end |
| Property, Plant and Equipment | JPY 24,564M | ▲14.8% versus prior FY-end |
| Net Assets | JPY 18,060M | ▲4.8% versus prior FY-end |
| Shareholders' Equity | JPY 18,055M | ▲4.8% versus prior FY-end |
| Total Interest-Bearing Debt | JPY 16,680M | - |
| └ Current Portion of Long-Term Borrowings | JPY 705M | - |
| └ Long-Term Borrowings | JPY 15,975M | - |
| Net Financial Debt Balance | JPY 7,434M | +JPY 3,571M from prior FY-end JPY 3,863M |
| EBITDA (3Q Cumulative) | JPY 5,367M | Operating income + depreciation + amortization of goodwill |
| Depreciation (3Q Cumulative) | JPY 1,186M | Includes intangible assets |
（Note）Net Debt/EBITDA is not disclosed in company materials as of 3Q. At prior FY-end, it was 0.74x.
News Released Alongside The Earnings Announcement
Major Announcements During The Quarter
- 2025/11/12Announced FY ending March 2026 2Q (interim) financial results. First interim disclosure since listing; recurring profit of JPY 2.61B with full-year progress of 69.0% FY Ending March 2026 2Q (Interim) Financial Results Summary (Japan GAAP) (Consolidated)
- 2026/01/27Launched new RTD “Shima-Chu” (Aogiri Shikwasa, sugar-free/regular) nationwide. Expanded RTD lineup with a dry, high-ABV (7%) product Orion’s New Chu-Hi “Shima-Chu” Is Born
- 2026/01/29Launched the second Junglia Okinawa invitation campaign. A promotion in which customers who purchase eligible products can enter a lottery to win Junglia Okinawa Park & Spa 1-Day pair tickets Orion Cross-Brand “Junglia Okinawa Invitation Campaign” Vol. 2
Large-Shareholding Filings / Material Proposals Over The Past Year
- Asahi Breweries: 10.11% (reporting obligation triggered 2025/09/25) - continued holding as a business alliance partner
- Kintetsu Group Holdings: 10.09% (reporting obligation triggered 2025/09/25) - strategic investment / capital and business alliance. Lock-up period through 2026/03/23
- Capital International Inc. (Joint Holding): 6.42% (reporting obligation triggered 2025/09/30) - pure investment in the ordinary course of business for institutional investor clients
- Nomura Capital Partners: 5.17% (reporting obligation triggered 2025/09/25) - pure investment (OA-related). Lock-up period through 2026/03/23. Subsequently filed a change report (short-term large-scale disposal)
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