Ito En, Ltd. (TSE: 2593), the Japanese beverage group best known globally for its Oi Ocha bottled green tea brand, reported consolidated results for FY2026 (the fiscal year ended April 30, 2026) under Japanese GAAP on June 1, 2026. Net sales rose 5.3% year-on-year to ¥497,877 million (approximately ¥497.9 billion), reflecting steady demand growth across its tea and health-beverage portfolio. Operating profit, however, declined 8.2% to ¥22,969 million, and ordinary profit fell 13.9% to ¥22,973 million. The headline shock was net profit attributable to shareholders of the parent, which plunged 75.5% to just ¥3,466 million from ¥14,156 million in the prior year — the result of extraordinary losses that dragged the bottom line well below operating trends.
Despite the net profit collapse, basic earnings per share (common stock) fell to ¥26.87 from ¥117.50 the prior year, and the return on equity dropped sharply to 2.0% from 8.0%. The ordinary profit margin on sales came in at 4.6%, and the operating margin compressed to 4.6% from a prior-year level implied by ¥25,021 million. Comprehensive income was ¥7,845 million, down 41.0% year-on-year, as the balance-sheet mark-to-market of investment securities also retreated.
Balance sheet remains solid; equity ratio edges up to 51.4%
On the balance sheet, total consolidated assets contracted slightly to ¥342,667 million from ¥344,598 million. Net assets increased modestly to ¥177,951 million from ¥175,971 million, and the equity ratio improved to 51.4% from 50.6%, reflecting retained equity even after the weak profit year. Book value per share (common stock) rose to ¥1,527.27 from ¥1,511.77, signalling balance-sheet resilience despite the earnings dip. Equity capital (自己資本) stood at ¥176,173 million.
Cash flow weakens; operating CF falls to ¥11.3bn
Cash generation deteriorated noticeably in FY2026. Operating cash flow came in at ¥11,301 million, down from ¥18,038 million the prior year, as weak net income reduced internal cash generation. Investing activities consumed ¥11,072 million (prior year: ¥13,333 million outflow), and financing activities used ¥16,609 million (prior year: ¥23,236 million). The period-end cash and cash equivalents balance declined to ¥71,080 million from ¥85,565 million, a reduction of ¥14,485 million over the year.
Dividend raised to ¥48; payout ratio inflates to 178.6%
In a clear signal of management's confidence in the normalisation of earnings, Ito En raised the annual dividend on common shares to ¥48.00 per share (¥24.00 interim + ¥24.00 year-end), up from ¥44.00 the prior year. Total dividends paid amounted to ¥4,047 million, which — given the sharply lower net profit — translated into a consolidated payout ratio of 178.6%, with net assets dividend yield at 3.2%. The company has simultaneously guided for next year's dividend to rise further to ¥52.00 per share (¥26.00 + ¥26.00), corresponding to a projected payout ratio of 54.5% once earnings recover.
FY2027 guidance: revenue flat, net profit recovers 230%
For FY2027 (ending April 30, 2027), Ito En guides consolidated net sales of ¥500,000 million (+0.4% year-on-year), operating profit of ¥20,000 million (-7.8%), ordinary profit of ¥20,500 million (-11.9%), and net profit attributable to shareholders of the parent of ¥11,430 million (+229.7%), with EPS of ¥95.44. The dramatic implied recovery in net profit (+229.7%) underlines that FY2026's result was depressed by non-recurring charges rather than a structural deterioration in the business. Revenue growth is expected to remain modest as volume and pricing gains in the domestic tea market offset headwinds elsewhere, while the operating profit guide actually implies a slight step-down from FY2026 levels — suggesting cost pressures continue.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 497,877 | 472,716 | +5.3% |
| Operating profit (¥ million) | 22,969 | ~25,021 | −8.2% |
| Ordinary profit (¥ million) | 22,973 | ~26,683 | −13.9% |
| Net profit attrib. to shareholders (¥ million) | 3,466 | 14,156 | −75.5% |
| EPS — common stock (¥) | 26.87 | 117.50 | −77.1% |
| ROE | 2.0% | 8.0% | −6.0pp |
| Total assets (¥ million) | 342,667 | 344,598 | −0.6% |
| Equity ratio | 51.4% | 50.6% | +0.8pp |
| Annual dividend — common (¥) | 48.00 | 44.00 | +9.1% |
| FY2027 net sales guidance (¥ million) | 500,000 | — | +0.4% |
| FY2027 net profit guidance (¥ million) | 11,430 | — | +229.7% |
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.