Japan: Asahi Group reports 2.2% revenue growth in January-September

Asahi Group Holdings, Ltd. announced on November 14 the financial results for the period of January 1 to September 30.

Revenue grew +2.2% YoY as revenue increased mainly in Europe and Oceania. This is largely the result of strategic price revisions and our focus on premiumization, both of which are significant factors that contributed to the rise in unit sales prices. Also, revenue on actual currency basis grew +7.2% YoY, the company said.

Core operating profit grew +2.3% YoY. The growth was mainly driven by increased profits in Japan and Europe, counterbalancing decreased profits in Oceania due to lower beer sales volume and higher variable costs. Core operating profit on actual currency basis also grew +7.3% YoY.

Unit sales price for beer-type beverages and non-alcohol beer categories continued to improve +3.0% YoY in total across three regions in Japan, Europe, and Oceania.

Total sales volume* of all five global brands grew +8% YoY. Particularly, Asahi Super Dry, a top priority of our global brand portfolio, grew +14% YoY driven mainly by sales expansion in major markets, including South Korea and the UK.

Asahi’s forecast for the full year 2024 remains unchanged.

Atsushi Katsuki, President & Group CEO, at Asahi Group Holdings, Ltd., commented:

“Over the period from January to September, despite facing challenging business conditions, businesses in different regions complemented each other’s performance, and we achieved steady growth in earnings across the Asahi Group as a whole. This solid progress was driven by sustained increase in unit sales prices owing to prudent pricing strategies and premiumization.

“In Japan, the shift in demand towards the beer category following liquor tax revisions continued to contribute to higher earnings. Additionally, increased sales in the ready-to-drink (RTD) alcohol beverage and non-alcohol beer categories also played a significant role. In Europe, the premium category, including non-alcohol beer, acted as a growth driver, and we are continuing to maintain and bolster our competitive advantage in major markets.

“Asahi Super Dry, a top priority in our global brand portfolio, saw sales volume growth of +14% YoY outside Japan, as strong sales are maintained in South Korea, the UK, and other markets. Global brands, along with Beer Adjacent Categories, particularly RTD and non-alcohol beer, are progressing on a steady trajectory, in line with the Asahi Group’s business portfolio strategy.

“Going forward, we will continue taking steps to achieve our annual financial targets while monitoring market and industry trends across each region. At the same time, we plan to channel investments into our brands and innovation to solidify our core business foundations.”

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