Sanrio Company reported first-half earnings that surpassed internal projections and lifted its full-year forecast, driven by stronger-than-expected sales in the Product Sales and Licensing in Japan businesses. The Tokyo-based character licensing firm now expects annual revenue of ¥184.3 billion ($1.2 billion), up from its August forecast of ¥168.8 billion.
Net sales for the six months through September rose 39.6% to ¥87.6 billion ($569 million), while operating profit jumped 66.1% to ¥39.1 billion ($254 million). The results mark the highest quarterly performance in the company’s history.
The domestic Product Sales and Licensing businesses benefited from collaborations related to Expo 2025 Osaka Kansai and ongoing target-client strategies, including collaboration initiatives with major licensees. International operations showed mixed results, with China continuing to drive growth in the overseas Licensing business while North America net sales increased despite market concerns over tariff impacts, though adjusted operating profit declined due to higher marketing investments.
The revised forecast considers potential downside risks to the overall character market due to the impact of U.S. tariff policies, tempering what would otherwise represent more aggressive growth targets. Sanrio increased its dividend to ¥62 per share from a previous forecast of ¥60.
