Sanrio released its 2025 integrated report (https://corporate.sanrio.co.jp/en/ir/library/integrated-report/) outlining an ambitious strategy to reach ¥5 trillion ($32.3 billion) in market capitalization by 2035, tripling its current valuation of about ¥1.65 trillion.
The Hello Kitty creator posted revenue of ¥144.9 billion ($936 million) and operating profit of ¥51.8 billion ($334 million) for the fiscal year ended March 2025, with return on equity reaching 48.6%. The company attributes much of its recent success to its 50th anniversary campaigns for its flagship character and expansion of its licensing business, particularly in North America and China.
Sanrio’s strategy centers on transforming its 450-plus character portfolio into what it calls “evergreen global IP” while reducing reliance on Hello Kitty, which now accounts for 30% of gross profit compared with 76% a decade ago. Characters including Cinnamoroll and Kuromi have gained traction with younger demographics.
The company aims for a 10% compound annual growth rate in operating profit over the next decade. To support this, Sanrio has allocated over ¥50 billion for mergers and acquisitions, signaling what executives describe as a shift into aggressive investment mode.
The report also detailed sustainability initiatives and corporate governance changes, including the company’s June transition to an audit committee structure with increased outside director representation. Whether Sanrio can sustain its momentum after the Hello Kitty anniversary tailwind remains an open question for investors.
