Interim report
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English Translation SUNTORY BEVERAGE & FOOD August 6 , 2026 Summary of Consolidated Financial Results for the Six Months Ended June 30 , 2026 < IFRS > ( UNAUDITED ) Suntory Beverage & Food Limited Tokyo Stock Exchange Company name : Shares listed : Securities code : 2587 URL : Representative : Inquiries : https://www.suntory.co.jp/softdrink/company/ Josuke Kimura , Representative Director , President & Chief Executive Officer Naoto Okinaka , Director , Chief Financial Officer TEL : + 81-3-5579-1837 ( from overseas ) Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results presentation meeting ( for institutional investors and analysts ) : August 7 , 2026 September 3 , 2026 Yes Yes ( Millions of yen with fractional amounts discarded , unless otherwise noted ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( Percentages indicate year - on - year changes ) Revenue Operating income Profit before tax for the period Profit for the period Six months ended ( Millions of yen ) ( % ) June 30 , 2026 899,879 11.6 June 30 , 2025 806,411 ( 1.3 ) ( Millions of yen ) 73,965 71,836 ( % ) ( Millions of yen ) 3.0 73,324 ( % ) 4.5 ( Millions of yen ) ( 11.2 ) 70,187 ( 14.0 ) 53,409 51,901 ( % ) 2.9 ( 12.4 ) Profit for the period attributable to owners of the Company Comprehensive income for the period Basic earnings Diluted earnings per share per share Six months ended ( Millions of yen ) ( % ) ( Millions of yen ) June 30 , 2026 42,075 2.3 June 30 , 2025 41,138 ( 11.5 ) 70,299 32,576 ( % ) 115.8 ( Yen ) 136.17 ( Yen ) ( 77.9 ) 133.13 ( 2 ) Consolidated financial position As at June 30 , 2026 December 31 , 2025 Total assets ( Millions of yen ) 2,294,954 2,218,015 Total equity ( Millions of yen ) 1,473,667 1,425,198 Equity attributable to owners of the Company ( Millions of yen ) 1,354,262 1,315,948 Ratio of equity attributable to owners of the Company to total assets ( % ) 59.0 59.3
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(3) Consolidated cash flows Net cash inflow (outflow) from operating activities Net cash inflow (outflow) from investing activities Net cash inflow (outflow) from financing activities Cash and cash equivalents at the end of the period Six months ended (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) June 30, 2026 71,169 (33,850) (27,949) 159,817 June 30, 2025 41,973 (40,486) (13,368) 145,882 2. Dividends Annual cash dividends First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total (Yen) (Yen) (Yen) (Yen) (Yen) Fiscal year ended December 31, 2025 – 60.00 – 60.00 120.00 Fiscal year ending December 31, 2026 – 60.00 Fiscal year ending December 31, 2026 (Forecast) – 60.00 120.00 Note: Revisions to the forecast of dividends most recently announced: None 3. Consolidated earnings forecast for the fiscal year ending December 31, 2026 (from January 1, 2026 to December 31, 2026) (Percentages indicate year -on-year changes) Revenue Operating income Profit before tax Profit for the year Profit for the year attributable to owners of the Company Basic earnings per share (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen) Fiscal year ending December 31, 2026 1,826,000 6.4 155,000 4.2 154,000 4.8 110,500 0.3 89,000 0.3 288.03 Note: Revisions to the earnings forecast most recently announced: None
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* Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies and changes in accounting estimates a. Changes in accounting policies required by IFRS: None b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) a. Total number of issued shares at the end of the period (including treasury shares) As at June 30, 2026 309,000,000 shares As at December 31, 2025 309,000,000 shares b. Number of treasury shares at the end of the period As at June 30, 2026 341 shares As at December 31, 2025 340 shares c. Average number of outstanding shares during the period (cumulative from the beginning of the year) Six months ended June 30, 2026 308,999,660 shares Six months ended June 30, 2025 308,999,708 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit corporation. * Proper use of earnings forecast, and other special matters The earnings forecast contained in these materials are based on our judgment attributable to information available to the Company and the Group as of the date of announcement of these materials, and include certain risks and uncertainties. These statements are not intended as a promise by the Company to achieve such results. Actual business results may differ substantially due to various factors such as economic situation surrounding the Company and the Group, market trend, exchange rates and other factors.
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- 1 - Attached Materials Index 1. Qualitative Information Regarding Settlement of Accounts for the First Six Months ........................ 2 (1) Operating results ................................ ................................ ................................ .......................... 2 (2) Financial position ................................ ................................ ................................ ........................ 3 (3) Analysis of cash flows ................................ ................................ ................................ ................. 3 (4) Consolidated earnings forecast and other forward-looking statements................................ ...........4 2. Condensed Consolidated Financial Statements and Significant Notes Thereto (Unaudited) .............. 5 (1) Condensed consolidated statement of financial position ................................ ............................... 5 (2) Condensed consolidated statement of profit or loss................................ ................................ .......7 (3) Condensed consolidated statement of comprehensive income ................................ ....................... 8 (4) Condensed consolidated statement of changes in equity ................................ ............................... 9 (5) Condensed consolidated statement of cash flows ................................ ................................ ........ 10 (6) Notes to condensed consolidated financial statements ................................ ................................ 11 (Going concern) ................................ ................................ ................................ ................................ 11 (Segment information) ................................ ................................ ................................ ...................... 11
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- 2 - 1. Qualitative Information Regarding Settlement of Accounts for the First Six Months (1) Operating results Suntory Beverage & Food Limited Group (the Group) has set the achievement of high-quality growth as its target in order to realize sustainable business growth and enhancement of corporate value as a truly global beverage enterprise. Under the medium-term management plan covering the period from 2024, the Group has established the four important strategic themes of “Brand strategy”, “Business structural transformation”, “DEI (diversity, equity and inclusion)” and “Sustainability”, and is actively developing business in line with these themes. For the operating results of the first six months of the year ending December 31, 2026, the Group reported consolidated revenue of 899.9 billion yen, up 11.6% year on year and up 5.4% on a currency neutral basis, due to proactive marketing activities centered on core brands and demand creation initiatives through the creation of new value. Consolidated operating income was 74.0 billion yen, up 3.0% year on year and down 5.4% on a currency neutral basis due to foreign exchange impacts, despite an increase in marketing expenses and higher raw material and logistics costs. Net profit attributable to owners of the Company was 42.1 billion yen, up 2.3% year on year and down 6.3% on a currency neutral basis. Results by segment are described below: In addition, effective January 1, 2026, we have restructured our organization to accelerate the transformation of our overseas operations and conduct integrated management. Consequently, the reportable segments, previously categorized as “Japan business”, “Asia Pacific business”, “Europe business”, and “Americas business”, have been reorganized into “Japan business”, “Europe business”, “Asia business”, “Oceania business”, and “Americas business”, effective from the fiscal year ending December 31, 2026. Year-on-year comparisons are made using figures for the first six months of the year ended December 31, 2025, restated to reflect the revised reportable segment classifications. [Japan business] Revenue was 360.1 billion yen, up 4.6% year on year. The beverage market was below the same period last year (based on the Company’s estimates) amid the continued impact of price revisions, but our sales volume exceeded the same period last year due to the continued strengthening of core brands as well as the launch of new products, including NOPE Guilty CSD. By brand, sales volumes were higher than the same period last year for Suntory Tennensui, BOSS, and Iyemon among our core brands, except for GREEN DA•KA•RA, which was impacted by lower sales volumes, particularly in large-size products. Suntory Tennensui performed well as a result of new product launches, in addition to successful marketing activities. As for BOSS, Amakunai Italiano of the Craft BOSS series achieved growth. For Iyemon, solid performance was recorded across large- and small-size products, as well as Iyemon Koi Aji (food with functional claims). In the category of food for specified health uses and food with functional claims, Tokusui, which was launched in October 2025, contributed to incremental sales growth. Segment profit was 21.3 billion yen, up 16.8% year on year, as the positive impact of increased revenue from higher sales volumes and price revisions outweighed higher raw material prices and logistics costs. [Europe business] Revenue was 211.9 billion yen, up 12.0% year on year and down 0.7% on a currency neutral basis.
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- 3 - In France, although sales volume continued to decline because of sluggish consumption, revenue rose due to foreign exchange impacts. In the UK, revenue increased due to higher sales volumes year on year, supported by strong performance of Lucozade. In Spain, revenue increased as a result of the expansion of the product portfolio and proactive marketing activities. Segment profit was 30.3 billion yen, down 6.6% year on year and down 16.6% on a currency neutral basis, due to one-off expenses associated with plant restructuring and an increase in marketing expenses. [Asia business] Revenue was 169.6 billion yen, up 12.9% year on year and up 4.3% on a currency neutral basis. In the beverage business, revenue increased in Vietnam, primarily driven by higher sales volumes year on year of PEPSI in the carbonated beverage category and Aquafina in the water category, owing to proactive marketing activities. In Thailand, sales volumes for the core brand PEPSI exceeded the same period of last year, contributing to higher revenue. In the health supplement business (Thailand and the Indochina Peninsula), revenue increased due to higher sales volumes coupled with foreign exchange impacts. Segment profit was 19.9 billion yen, down 0.8% year on year and down 9.3% on a currency neutral basis. [Oceania business] Revenue was 60.0 billion yen, up 69.7% year on year and up 49.0% on a currency neutral basis. Revenue increased due to year-on-year sales volumes growth in the energy drink category, alongside sales contributions from RTD alcoholic beverages following their commercial launch in Australia in July 2025 and in New Zealand in January 2026. Segment profit was 5.2 billion yen, up 156.2% year on year and up 106.2% on a currency neutral basis, due to the positive impact of increased revenue and foreign exchange impacts. [Americas business] Revenue was 98.2 billion yen, up 12.5% year on year and up 5.5% on a currency neutral basis. Revenue increased due to the positive impact of price revisions, alongside contributions from new products in the energy drink and carbonated beverage categories. Segment profit was 10.3 billion yen, up 0.1% year on year and down 6.1% on a currency neutral basis, as higher manufacturing costs offset the impact of increased revenue. (2) Financial position Total assets as at June 30, 2026 stood at ¥2,295.0 billion, an increase of ¥76.9 billion compared to December 31, 2025. This was mainly due to the depreciation of the Japanese yen against key currencies, as well as increase in trade and other receivables and inventories. Total liabilities stood at ¥821.3 billion, an increase of ¥28.5 billion compared to December 31, 2025. This was due in part to increases in trade and other payables. Total equity stood at ¥1,473.7 billion, an increase of ¥48.5 billion compared to December 31, 2025. This was primarily due to an increase in retained earnings and an increase in other components of equity associated with the depreciation of the Japanese yen against key currencies. (3) Analysis of cash flows Cash and cash equivalents as at June 30, 2026 amounted to ¥159.8 billion, an increase of ¥11.2 billion compared to December 31, 2025. Net cash inflow from operating activities was ¥71.2 billion, an increase of ¥29.2 billion compared to the same period of the previous year. This was mainly the result of profit before tax for the period of
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- 4 - ¥73.3 billion, depreciation and amortization of ¥45.3 billion, and an increase in trade and other payables of ¥20.9 billion, despite an increase in trade and other receivables of ¥18.3 billion and an increase in inventories of ¥21.3 billion. Net cash outflow from investing activities was ¥33.9 billion, a decrease of ¥6.6 billion compared to the same period of the previous year. This was mainly the result of payments for property, plant and equipment and intangible assets of ¥34.9 billion. Net cash outflow from financing activities was ¥27.9 billion, an increase of ¥14.6 billion compared to the same period of the previous year. This was mainly the result of expenditures for dividends paid to owners of the Company of ¥18.5 billion, and payments of lease liabilities of ¥6.9 billion. (4) Consolidated earnings forecast and other forward-looking statements As a result of the 2026 Kumamoto Earthquake that occurred in July 2026, certain damage has been identified at Suntory Kyushu Kumamoto Plant and other facilities, where the Company outsources the production of soft drinks. The Company is currently investigating the details, including any potential impact on its financial performance. The consolidated earnings forecast for the year ending December 31, 2026 is unchanged from that announced on February 12, 2026. Under the assumption that a highly uncertain environment will continue, the Group will take steady steps toward achieving the earnings forecast by continuing to aim for both sales volume expansion and revenue growth in all segments through value creation.
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- 5 - 2. Condensed Consolidated Financial Statements and Significant Notes Thereto (Unaudited) (1) Condensed consolidated statement of financial position Millions of yen As at December 31, 2025 As at June 30, 2026 Assets Current assets: Cash and cash equivalents 148,663 159,817 Trade and other receivables 401,239 424,883 Other financial assets 2,719 4,437 Inventories 137,528 161,051 Other current assets 35,892 40,538 Subtotal 726,043 790,728 Assets held for sale 1,114 2,227 Total current assets 727,157 792,956 Non-current assets: Property, plant and equipment 518,141 524,130 Right-of-use assets 67,570 65,201 Goodwill 299,861 301,300 Intangible assets 565,445 568,770 Investments accounted for using the equity method 135 148 Other financial assets 15,013 14,457 Deferred tax assets 17,486 20,488 Other non-current assets 7,203 7,501 Total non-current assets 1,490,858 1,501,998 Total assets 2,218,015 2,294,954
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- 6 - Millions of yen As at December 31, 2025 As at June 30, 2026 Liabilities and equity Liabilities Current liabilities: Bonds and borrowings 14,950 15,543 Trade and other payables 503,547 531,010 Other financial liabilities 26,064 24,612 Accrued income taxes 16,957 16,852 Provisions 1,546 1,605 Other current liabilities 11,139 14,989 Total current liabilities 574,205 604,613 Non-current liabilities: Bonds and borrowings 506 470 Other financial liabilities 61,533 58,210 Post-employment benefit liabilities 16,155 16,209 Provisions 11,191 10,790 Deferred tax liabilities 120,624 123,832 Other non-current liabilities 8,599 7,160 Total non-current liabilities 218,611 216,673 Total liabilities 792,817 821,286 Equity Share capital 168,384 168,384 Share premium 185,493 185,516 Retained earnings 767,388 790,731 Treasury shares (1) (1) Other components of equity 194,683 209,632 Total equity attributable to owners of the Company 1,315,948 1,354,262 Non-controlling interests 109,249 119,404 Total equity 1,425,198 1,473,667 Total liabilities and equity 2,218,015 2,294,954
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- 7 - (2) Condensed consolidated statement of profit or loss Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Revenue 806,411 899,879 Cost of sales (499,042) (567,174) Gross profit 307,369 332,705 Selling, general and administrative expenses (233,309) (256,363) Gain on investments accounted for using the equity method 121 (40) Other income 2,017 1,871 Other expenses (4,362) (4,207) Operating income 71,836 73,965 Finance income 1,381 1,182 Finance costs (3,030) (1,823) Profit before tax for the period 70,187 73,324 Income tax expense (18,286) (19,915) Profit for the period 51,901 53,409 Attributable to: Owners of the Company 41,138 42,075 Non-controlling interests 10,762 11,333 Profit for the period 51,901 53,409 Earnings per share (Yen) 133.13 136.17
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- 8 - (3) Condensed consolidated statement of comprehensive income Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Profit for the period 51,901 53,409 Other comprehensive income Items that will not be reclassified to profit or loss: Changes in the fair value of financial assets 104 (135) Remeasurement of defined benefit plans 75 17 Total 180 (117) Items that may be reclassified to profit or loss: Translation adjustments of foreign operations (18,056) 17,139 Changes in the fair value of cash flow hedges (1,444) (137) Changes in comprehensive income of investments accounted for using the equity method (4) 4 Total (19,505) 17,007 Other comprehensive income for the period, net of tax (19,324) 16,890 Comprehensive income for the period 32,576 70,299 Attributable to: Owners of the Company 29,726 56,832 Non-controlling interests 2,849 13,467 Comprehensive income for the period 32,576 70,299
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- 9 - (4) Condensed consolidated statement of changes in equity Six months ended June 30, 2025 Millions of yen Attributable to owners of the Company Share capital Share premium Retained earnings Treasury shares Other compo- nents of equity Total Non- controlling interests Total equity Balance at January 1, 2025 168,384 185,311 716,919 (1) 138,973 1,209,587 105,690 1,315,278 Profit for the period 41,138 41,138 10,762 51,901 Other comprehensive income (11,411) (11,411) (7,913) (19,324) Total comprehensive income for the period – – 41,138 – (11,411) 29,726 2,849 32,576 Purchase of treasury shares (0) (0) (0) Dividends (20,084) (20,084) (6,441) (26,526) Transactions with non-controlling interests 21 21 (26) (5) Reclassification to retained earnings 423 (423) – – Total transactions with owners of the Company – 21 (19,661) (0) (423) (20,063) (6,468) (26,531) Balance at June 30, 2025 168,384 185,333 738,397 (1) 127,137 1,219,251 102,071 1,321,322 Six months ended June 30, 2026 Millions of yen Attributable to owners of the Company Share capital Share premium Retained earnings Treasury shares Other compo- nents of equity Total Non- controlling interests Total equity Balance at January 1, 2026 168,384 185,493 767,388 (1) 194,683 1,315,948 109,249 1,425,198 Profit for the period 42,075 42,075 11,333 53,409 Other comprehensive income 14,756 14,756 2,133 16,890 Total comprehensive income for the period – – 42,075 – 14,756 56,832 13,467 70,299 Purchase of treasury shares (0) (0) (0) Dividends (18,539) (18,539) (3,278) (21,818) Transactions with non-controlling interests 22 22 (33) (11) Reclassification to retained earnings (192) 192 – – Total transactions with owners of the Company – 22 (18,732) (0) 192 (18,517) (3,312) (21,829) Balance at June 30, 2026 168,384 185,516 790,731 (1) 209,632 1,354,262 119,404 1,473,667
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- 10 - (5) Condensed consolidated statement of cash flows Millions of yen Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before tax for the period 70,187 73,324 Depreciation and amortization 39,840 45,335 Impairment losses (reversal of impairment losses) 94 265 Interest and dividends income (1,369) (1,173) Interest expense 2,061 1,745 Loss (gain) on investments accounted for using the equity method (121) 40 Decrease (increase) in inventories (31,064) (21,267) Decrease (increase) in trade and other receivables (38,203) (18,285) Increase (decrease) in trade and other payables 30,575 20,871 Other (7,001) (11,655) Subtotal 65,000 89,202 Interest and dividends received 1,630 1,243 Interest paid (2,279) (1,781) Income tax paid (22,378) (17,494) Net cash inflow (outflow) from operating activities 41,973 71,169 Cash flows from investing activities Payments for property, plant and equipment and intangible assets (42,121) (34,910) Proceeds on sale of property, plant and equipment and intangible assets 1,653 940 Other (18) 119 Net cash inflow (outflow) from investing activities (40,486) (33,850) Cash flows from financing activities Increase (decrease) in short-term borrowings and commercial papers 20,098 805 Repayments of long-term borrowings (39) (47) Payments of lease liabilities (6,896) (6,877) Dividends paid to owners of the Company (20,084) (18,539) Dividends paid to non-controlling interests (6,441) (3,278) Other (5) (10) Net cash inflow (outflow) from financing activities (13,368) (27,949) Net increase (decrease) in cash and cash equivalents (11,882) 9,368 Cash and cash equivalents at the beginning of the period 160,493 148,663 Effects of exchange rate changes on cash and cash equivalents (2,728) 1,785 Cash and cash equivalents at the end of the period 145,882 159,817
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- 11 - (6) Notes to condensed consolidated financial statements (Going concern) The condensed consolidated financial statements are prepared on going concern basis. (Segment information) The reportable segments are components of the Group for which separate financial information is available and regularly reviewed by management to make decisions about the allocation of resources and to assess segment performance. The Group manufactures and distributes soft drinks and foods, including mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks, food for specified health uses and alcoholic beverages. The Company, together with its manufacturing and sales subsidiaries, operates in the domestic market, and its regional subsidiaries operate in overseas markets. Therefore, the Group comprises of five reportable segments: "Japan business", “Europe business”, “Asia business”, “Oceania business” and "Americas business". The intersegment transactions are considered on an arm's length basis. In addition, effective January 1, 2026, we have restructured our organization to accelerate the transformation of our overseas operations and conduct integrated management. Consequently, the reportable segments, previously categorized as “Japan business”, “Asia Pacific business”, “Europe business”, and “Americas business”, were reorganized into “Japan business”, “Europe business”, “Asia business”, “Oceania business”, and “Americas business”, effective from the fiscal year ending December 31, 2026. To present comparisons with the previous corresponding periods, the figures for the first six months of the year ended December 31, 2025, have been reclassified into the reportable segments after the change. Profit or loss for each reportable segment of the Group is as follows: Six months ended June 30, 2025 Millions of yen Reportable segments Segment total Reconciliations Consolidated Japan Europe Asia Oceania Americas Revenue: External customers 344,189 189,261 150,259 35,370 87,330 806,411 － 806,411 Intersegment 40 268 358 － － 667 (667) － Total revenue 344,230 189,529 150,617 35,370 87,330 807,078 (667) 806,411 Segment profit 18,252 32,411 20,095 2,046 10,247 83,053 (11,217) 71,836 Six months ended June 30, 2026 Millions of yen Reportable segments Segment total Reconciliations Consolidated Japan Europe Asia Oceania Americas Revenue: External customers 360,091 211,943 169,600 60,011 98,233 899,879 － 899,879 Intersegment 51 271 － － － 322 (322) － Total revenue 360,142 212,214 169,600 60,011 98,233 900,202 (322) 899,879 Segment profit 21,325 30,267 19,927 5,241 10,260 87,021 (13,056) 73,965 "Reconciliations" to segment profit represents overhead costs incurred by the Company to manage the Group's operations and is not allocated to each reportable segment. Segment profit agrees with operating income presented in the condensed consolidated statement of profit or loss.