Thank you for your continued support.
The Japanese economy continues to show a moderate recovery, driven by improvements in employment and income conditions and an increase in inbound tourist demand, although some areas of weakness remain. Globally, however, the economic outlook remains uncertain amid prolonged high interest rates in Europe and the U.S., an ongoing slowdown in China’s real estate sector, shifts in U.S. trade and foreign policy, and rising geopolitical tensions in the Middle East.
Amid this environment, the Sanrio Group has been steadily implementing the key initiatives outlined in our medium-term management plan, From Uncertain Growth to Stable and Perpetual Growth (FY3/2025–FY3/2027), announced in May 2024. Fueled by the success of initiatives celebrating Hello Kitty’s 50th anniversary in 2024, as well as the upcoming 50th and 20th anniversaries of My Melody and Kuromi in 2025, and supported by the positive results of our recent strategy to spotlight a broader range of characters, overseas licensing sales—particularly in North America—saw significant growth. As a result, operating profit in FY3/2025—the first year of our medium-term management plan—reached a record-breaking 51.8 billion yen, marking a new high for the second consecutive year. In October 2024, we also achieved one of our long-standing goals by surpassing 1 trillion yen in market capitalization. In response to this significant milestone, we updated our medium-term management plan in May 2025 and introduced a new 10-year long-term vision: “Lighting the Way to Bring Smiles to All – Roadmap to a World of Smiles”.
To further enhance corporate value, we carried out a secondary offering of shares in November 2024, selling approximately 12.6% of shares previously held by three major banks. This move was part of our efforts to accelerate the reduction of cross-shareholdings and to broaden and diversify our shareholder base, thereby strengthening governance discipline. In June 2025, we transitioned to a Company with an Audit & Supervisory Committee structure to reinforce the Board of Directors’ oversight function, enhance our corporate governance framework, and enable faster decision-making and more agile business execution.
Guided by our corporate philosophy, “Minna Nakayoku” (Getting Along Together), and our vision of “One World, Connecting Smiles,” we remain committed to bringing smiles to more people and spreading happiness around the world. Through these efforts, we aim to drive continued growth as a truly global entertainment company.
We are committed to spreading smiles around the world and to meeting the expectations of our shareholders and society as a whole.
We sincerely appreciate your continued understanding and support.
July 2025
President and CEO
