Suntory Beverage & Food Limited — Cyborg Score 6/10

Solid
Beverage Manufacturing & Food Products (FMCG)

Strategic Profile

On a trailing twelve month basis, Suntory Beverage & Food earned ¥88,723 million of net income on ¥1.715 trillion of revenue, achieving a 5.2% net margin compared with 5.5% a year earlier, with five year earnings growth rate of 9.2% per year despite recent margin contraction. Revenue growth over the past five years was 8.3% annually, which is in line with its 6.8% growth forecast for 2026, outpacing the 2.4% per year forecast for similar companies in the industry.

Cyborg Score Rationale

For 2026, the company forecasts revenue growth of about 4% and a sharp recovery in profitability, with operating income projected to rise 26.6% and profit attributable to owners to grow 32.8%. While near-term earnings declined in 2025, strong historical growth trajectory and recovery outlook support medium-term positioning, though current valuation metrics suggest limited upside.

Top Insights

  • Suntory Beverage & Food reported in line with analyst predictions, delivering revenues of JP¥1.7t and statutory earnings per share of JP¥287, suggesting the business is executing well and in line with its plan.
  • Analysts are forecasting revenues of JP¥1.83t in 2026, representing a 6.8% improvement in revenue compared to the last 12 months.
  • A dividend of JPY60.00 per share for the period ending December 31, 2025 is planned.
  • DCF fair value estimate stands at ¥10,263.05 with five year earnings growth of 9.2% per year, though current valuation leaves room despite lower recent earnings and slower 5.6% per year earnings growth forecasts versus the broader JP market's 9.1%.

Named Competitors

  • Coca-Cola — Global non-alcoholic beverage leader
  • Yakult — Japanese probiotic beverage and health products
  • Diageo — Global alcoholic beverages and spirits
  • PepsiCo — Global beverages and snacks

Recent Developments

  • (February 2026) FY2025 results released with flat performance; operating income down 32.8% but recovery guidance provided for 2026
  • (February 2026) Maintained annual dividend at ¥120 per share for FY2025 despite profitability challenges
  • (February 2026) Updated 2026 guidance forecasts 26.6% operating income growth and 32.8% profit growth as profitability recovers

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