Sanrio Company reported record operating profit of ¥51.8 billion ($336 million) for the fiscal year ended March 31, 2025, nearly doubling from the previous year, according to the Tokyo-based character firm’s securities filing. Net sales climbed 45% to ¥144.9 billion, driven by overseas expansion.
North American sales surged 121% to ¥27.4 billion as limited-edition Hello Kitty merchandise for the character’s 50th anniversary performed strongly at major retailers. European revenue more than doubled, reaching ¥6.2 billion, while the licensing business benefited from broader character appeal.
The diversification strategy proved effective, with Kuromi and Cinnamoroll attracting attention alongside Hello Kitty. In China, Hangyodon’s popularity rose rapidly, helping Asian segment sales increase 55% to ¥23.4 billion.
Domestic operations benefited from inbound tourism, with theme park attendance and store traffic increasing significantly. Operating profit margin improved to 36%, reflecting the high-margin nature of intellectual property licensing.
The company’s reliance on character popularity cycles remains a concern. Management acknowledged business volatility as a key challenge, citing historical performance fluctuations including seven consecutive years of operating profit decline through March 2021. Sanrio announced a capital alliance with anime producer IG Port to develop animated content, signaling efforts to deepen storytelling beyond merchandise.
