Asahi Group Holdings FY2024 H1 Financial Results
- Revenue grew +3.8% YoY as revenue increased across all businesses. 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 +10.1% YoY.
- Core operating profit grew +6.2% YoY. The growth was due mainly to increased revenue in each region and enhanced cost management. Core operating profit on actual currency basis also grew +12.6% YoY.
- Unit sales price for beer-type beverages and non-alcohol beer categories continued to improve +3.3% YoY in total across three regions in Japan, Europe, and Oceania.
- Total sales volume* of all five global brands grew +11% YoY. Particularly, Asahi Super Dry, a top priority of our global brand portfolio, grew +27% YoY driven mainly by sales expansion in major markets, including Asia and Europe.
- For the full year forecast of 2024, revenue growth is downwardly revised to 2.7% YoY and core operating profit growth remains unchanged at 4.3% YoY to reflect first-half developments across regions among other factors. On actual currency basis, revenue and core operating profit growth is upwardly revised to 6.5% and 8.8% respectively.
“Our performance in the first half of the year grew steadily, thanks to sustained increase in unit sales prices driven by prudent pricing strategies and premiumization.
In Japan, the shift in demand towards the beer category following liquor tax revisions, and the expansion of the premium category including our global brands in Europe, both contributed to higher unit sales prices. Asahi Super Dry, a top priority in our global brand portfolio, saw a sales volume growth of +27% YoY outside Japan, fueled by sales expansion in major markets in Asia and Europe, especially in South Korea and the UK.
Growth in the non-alcohol beer and ready-to-drink alcohol beverage categories also contributed to the increase in earnings. Asahi Group has been focusing on strengthening our Beer Adjacent Categories initiative as one of our key growth strategies. Our first half results indicate that various efforts in this area, including the rollout of innovative new products in each region, have already started showing promising results.
Going forward, while market conditions and consumer trends across various regions do not warrant optimism, we will continue to invest in our brands and innovation to expand our competitive advantage and bolster our profit base. Furthermore, we will promote growth investments and enhance shareholder returns through optimal cash allocation based on a solid financial position.”