Tokyo, Japan – Asahi Group Holdings, a prominent name in the Japanese beer industry, has reported a notable deceleration in its growth trajectory during the second quarter of 2023, according to its latest financial results.
The company, which had celebrated an impressive surge in its performance during the initial quarter of the year, has observed a more subdued expansion in the subsequent months. The figures from the first quarter had revealed a substantial 7.9% increase in revenue and an impressive leap of over 24% in core operating profit. However, the second quarter’s results showcase a less spectacular performance for the beer giant.
For the quarter ending on June 30th, Asahi Group Holdings noted a more modest growth of 5.8% in revenue, while its core operating profit exhibited a gradual uptick of 9%.
Despite the tempered performance observed in the second quarter, the full-year outlook for 2023 remains optimistic for Asahi. This positive outlook has been significantly influenced by the robust performance of the alcohol beverage sector within Japan. Notably, the company has revised its performance projections, particularly pertaining to core operating profit and operating profit.
As part of the revised forecasts, Asahi now anticipates a year-on-year growth of +3.2% for its core operating profit, a positive adjustment from its initial forecast at the commencement of the year. Additionally, the core operating profit is set to rise by +4.2% on an actual currency basis.
“At the outset of the year, we achieved steady growth in both revenue and core operating profit, primarily attributed to the successful implementation of judicious pricing strategies that led to enhanced average selling prices,” commented Atsushi Katsuki, President and CEO of Asahi Group Holdings.
Katsuki further highlighted, “Even in the face of challenging cost dynamics, the Asahi Group has adeptly sustained and expanded its competitive edge across different regions, resulting in enhanced profitability.”
He elaborated, “Particularly within Japan, our business performance is on a recovery trajectory, driven by the expansion of on-trade sales and the burgeoning popularity of our core brands. With the impending liquor tax revisions in October this year, we are poised to accelerate growth within the beer category, including the launch of innovative products.”
Katsuki also disclosed that apart from its domestic market in Japan, the company’s flagship product, Asahi Super Dry, witnessed an impressive year-on-year sales volume growth of +24%. This achievement can be attributed to the expanding sales footprint in major markets across Asia, Europe, and Oceania.
Looking ahead, Asahi remains enthusiastic about its role as the official beer sponsor of the forthcoming Rugby World Cup 2023, scheduled to take place in France this September.
“Asahi Super Dry holds the distinction of being the Official Beer, and we are eagerly anticipating this opportunity to not only showcase the brand’s inherent value to a global audience but also to share in the excitement of this event,” Katsuki expressed with confidence.
