Yakult Honsha Co., Ltd. (TSE: 2267), the Tokyo-based maker of the flagship Yakult probiotic dairy drink and a broad range of beverages, posted softer full-year results for FY2026 (April 2025 – March 2026) on May 12, 2026. Consolidated revenue slipped 2.7% year-on-year to ¥486,425 million, while operating profit fell 18.4% to ¥45,185 million and ordinary profit dropped 19.5% to ¥61,084 million. Profit attributable to owners of the parent eased 2.9% to ¥44,228 million, from ¥45,533 million a year earlier. Earnings per share edged up to ¥150.72, from ¥150.48, reflecting the firmer net profit relative to share count.
The operating margin compressed to 9.3% from 11.1% the prior year, while return on equity declined to 7.5% from 8.1%. With its products sold in markets across the Americas and Asia, Yakult derives a substantial portion of its sales and probiotic volumes outside Japan, leaving the group exposed to both local demand trends in those regions and to the translation of overseas earnings back into yen.
What drove the operating-profit decline
The sharp drop at the operating line — far steeper than the modest revenue decline — points to a combination of softer overseas probiotic dairy sales and cost and currency headwinds compressing margins. Below the operating line, ordinary profit of ¥61,084 million remained well above operating profit, supported by non-operating income including an equity-method investment gain of ¥4,057 million. Notably, comprehensive income rose 18.9% to ¥75,106 million, well ahead of net profit, indicating sizeable positive other-comprehensive-income items such as foreign-currency translation adjustments and valuation gains during the year — a reminder that headline net profit understated the full economic result for the period.
Balance sheet expands; operating cash flow normalises lower
Total consolidated assets expanded to ¥912,578 million from ¥864,317 million a year earlier, while net assets rose to ¥654,321 million from ¥629,515 million. The equity ratio stood at a robust 66.4%, underscoring Yakult's conservatively financed, cash-generative balance sheet, with net assets per share of ¥2,075.29. Operating cash flow normalised lower to ¥52,121 million from ¥84,687 million in FY2025, reflecting the weaker earnings and working-capital movements. Investing outflows of -¥61,020 million reflect capital expenditure and investment activity, while financing outflows of -¥31,466 million cover dividend payments and debt management. Cash and equivalents ended the year at ¥193,117 million.
Dividend raised to ¥70; FY2027 guided to ¥527.0bn revenue
Yakult raised the annual cash dividend to ¥70 per share for FY2026 (¥33 interim + ¥37 year-end), with the year-end payout including a ¥4 commemorative dividend. The figure implies a payout ratio of 46.4% on consolidated net profit. Looking ahead, the company guided for FY2027 (ending March 2027) with revenue of ¥527,000 million (+8.3%), operating profit of ¥44,000 million (-2.6%), ordinary profit of ¥57,500 million (-5.9%), and net profit of ¥46,500 million (+5.1%), equivalent to EPS of ¥174.21. The guidance points to a return to top-line growth and a higher bottom line even as operating and ordinary profit are seen edging lower, and the company forecast a further increase in the annual dividend to ¥72 per share.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 486,425 | 499,683 | −2.7% |
| Operating profit (¥ million) | 45,185 | 55,391 | −18.4% |
| Ordinary profit (¥ million) | 61,084 | 75,860 | −19.5% |
| Net profit attrib. to owners (¥ million) | 44,228 | 45,533 | −2.9% |
| EPS (¥) | 150.72 | 150.48 | +0.2% |
| ROE | 7.5% | 8.1% | −0.6pp |
| Operating margin | 9.3% | 11.1% | −1.8pp |
| Total assets (¥ million) | 912,578 | 864,317 | +5.6% |
| Equity ratio | 66.4% | — | — |
| Operating cash flow (¥ million) | 52,121 | 84,687 | −38.5% |
| Annual dividend (¥) | 70 | — | — |
| FY2027 guidance — revenue (¥ million) | 527,000 | — | +8.3% |
| FY2027 guidance — operating profit (¥ million) | 44,000 | — | −2.6% |
| FY2027 guidance — net profit (¥ million) | 46,500 | — | +5.1% |
| FY2027 guidance — EPS (¥) | 174.21 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.