Sanrio FY26 Operating Profit Jumps 50% to a Record ¥77.9 Billion as Global Character Licensing Booms

Sanrio Co., Ltd. (TSE: 8136) reported consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 33.9% to ¥194,088 million, operating profit jumped 50.3% to ¥77,859 million, ordinary profit climbed 48.4% to ¥79,335 million, and net profit attributable to owners of the parent rose 30.9% to ¥54,608 million — all records. The operating margin reached 40.1% and ROE stood at 41.6%. Comprehensive income increased 23.2% to ¥58,981 million. On a post-split basis, EPS was ¥45.33 (diluted ¥44.74).

Licensing leads a record year

Licensing is the high-margin engine behind the year. The continued global popularity of Hello Kitty, layered on anniversary years for My Melody and Kuromi in 2025, a multi-character strategy, and collaborations with global brands all drove royalty income higher, with the apparel and health & beauty categories especially strong. The Merchandise (retail) business benefited from a sharp rise in domestic customers, even as inbound-tourist numbers softened from November 2025.

Overseas momentum across the Americas and Asia

Growth spanned Japan, North America, Europe, South America (Brazil), and Asia. China saw strong toy, apparel and corporate-tie-up licensing plus new flagship stores in Shanghai and Beijing; Korea, Taiwan, Hong Kong/Macau and Southeast Asia all contributed. Japan remains the largest and most profitable region, with a segment operating margin in the high-40s percent.

Theme parks and a virtual push

Sanrio operates the Sanrio Puroland (Tama, Tokyo) and Harmonyland (Oita) theme parks. In December 2025 it opened a permanent VR attraction, "Virtual Sanrio Puroland," extending its character experiences into the metaverse and broadening the ways fans engage with its brands beyond physical visits.

5-for-1 split, higher dividend, and a 15% profit-growth outlook

On the balance sheet, total assets stood at ¥234,684 million, net assets at ¥155,971 million, the equity ratio at 66.4%, and BPS at ¥128.49. Operating cash flow was ¥52,554 million. The FY3/2026 annual dividend was ¥69.00 (¥31 interim + ¥38 year-end, a 30.4% payout ratio), up from ¥53.00. A 5-for-1 common-stock split took effect April 1, 2026; on the post-split share count the FY3/2027 forecast dividend is ¥16.00 (¥8 interim + ¥8 year-end). For FY3/2027, management guides revenue of ¥229,800 million (+18.4%), operating profit of ¥89,500 million (+15.0%), ordinary profit of ¥90,200 million (+13.7%), and net profit of ¥63,800 million (+16.8%), with EPS of ¥52.62. Management flagged uncertainty from U.S. tariff policy as a watch item for the licensing business.

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.