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Hello Kitty & Friends, Europe Growth Drive Sanrio to Record Quarterly Sales, Operating Profit

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Hello Kitty & Friends, Europe Growth Drive Sanrio to Record Quarterly Sales, Operating Profit

Sanrio (TYO:8136) shares closed 4% higher on Monday after it reported higher fiscal first-quarter earnings, driven by the growing popularity of its characters worldwide and broader licensing opportunities.

"In Q1, sales and contribution profit increased for a sixth consecutive year, both marking record highs. Growth continued across regions amid increased awareness of a wide range of Sanrio characters," the company said.

Specifically, sales increased 21% to 52 billion yen, while operating profit climbed 11% to 22.4 billion yen. All four regions - Japan, Asia, Americas and Europe -posted double-digit sales growth rates, with Japan contributing the biggest share at 31.6 billion yen and Europe growing the most at 53.9%.

"Europe has gained greater prominence, contributing to the evolution of a more balanced regional portfolio," Sanrio said. "Our core apparel category drove expansion across a broad range of licensees, while increased awareness of characters beyond Hello Kitty also led to more opportunities featuring those characters. We aim to expand into toys and other new categories by leveraging the strong brand value we have built through licensing with global brands."

Meanwhile, profit attributable to owners of the parent rose 9.3% to 15.5 billion yen in the quarter ended June 30. EPS came in at 12.75 yen, up from 11.79 yen in the prior year.

Looking ahead, Sanrio maintained its full-year forecast for sales of 229.8 billion yen, operating profit of 89.5 billion yen, and attributable profit of 63.8 billion yen. Following a 5-for-1 common stock split, a full-year dividend of 16 yen per share is expected to be paid out in the year ending March 31, 2027.

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