Sanrio Co. doubled its quarterly operating profit to a record as the creator of Hello Kitty capitalized on the character’s 50th anniversary and expanded its reach in key overseas markets.
Operating profit jumped 77% to ¥23.6 billion ($157 million) in the six months through September, the Tokyo-based company reported Friday. Revenue climbed 43% to ¥62.8 billion, driven by strong licensing growth in North America and China.
The results highlight Sanrio’s success in monetizing its character portfolio beyond Japan, where it began in 1960. North American licensing revenue soared 180% from a year earlier as the company expanded partnerships in apparel, toys and beauty products. China operations also saw significant growth through collaboration with Alibaba Group’s Alifish platform.
“The strategy of featuring a wide range of Sanrio characters has been successful,” the company said in a statement. Domestic sales benefited from increased tourist spending, with foreign visitors accounting for nearly 40% of retail revenue.
Sanrio raised its full-year operating profit forecast by 11% to ¥41 billion, though it warned marketing costs will rise in the second half. The company plans to increase its annual dividend by ¥3 to ¥40 per share.
Beyond Hello Kitty’s anniversary promotions, Sanrio is pushing to create “evergreen” global intellectual property while expanding its character portfolio. Its membership service has grown to 2.24 million users as the company builds direct relationships with consumers.
