Coca-Cola Bottlers Japan Holdings (2579.T): Buy: High profit growth to continue, shareholder returns may be beefed up

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Coca-Cola Bottlers Japan Holdings (2579.T): Buy: High profit growth to continue, shareholder returns may be beefed up

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31 Jul 2026 05:43:32 ET │ 13 pages

Coca-Cola Bottlers Japan Holdings

(2579.T)

Buy: High profit growth to continue, shareholder returns may be beefed up

CITI'S TAKE

Q2 business profit, announced on July 30, continued to grow strongly Buy

(+35% YoY) but was slightly short of consensus, and the share price fell more Price (31 Jul 26 15:30) ¥3,828.0

than 10% the day after the announcement. We believe this is because one- Target price ¥4,800.0↑off build-up in promotion expenses in Q2 and the framework for a big

buyback were viewed as exhausting positive news. However, fundamentals from ¥4,500.0

remain strong (price hikes and volume growth), and management remains Expected share price return 25.4%

committed to achieving guidance. We expect CCBJ to strengthen its MTP

Expected dividend yield 1.9%shareholder returns policy when it announces FY12/26 Q4 results and are

bullish about longer-term profit growth and returns. We maintain our Buy. Expected total return 27.3%

Market Cap ¥621,939M

Post-announcement share price decline looks excessive — While the share price

was high beforehand, Q2 results details did not raise any doubts about business US$3,898M

quality or the longer-term growth scenario. Q2 business profit of ¥10.8bn was slightly

below consensus, but mainly because promotion expenses increased ¥1.6bn YoY. We

believe this was temporary.

Price PerformanceFundamentals are solid — CCBJ forecasts the situation in the Middle East will inflate

costs by ¥2bn-¥4bn in FY12/26 but has maintained guidance on the assumption it can (RIC: 2579.T, BB: 2579 JP)

absorb the impact through in-house measures. Also, it again expressed confidence in