Asahi Group Holdings: A Spirited Start to 2023 Cools, Yet Optimism Brews Ahead of Rugby World Cup
In the wake of a strong first quarter in 2023, Asahi Group Holdings has experienced a noticeable slowdown, as indicated by the company’s recent figures.
The year began with much fanfare for the Japanese beer magnate, with revenue growth of 7.9% and core operating profit surging by over 24%. However, the second quarter has been less dramatic, with a more measured growth.
For the quarter ending 30th June, the company saw revenue increase by a modest 5.8%, and core operating profit rise by 9%.
Despite the slower pace, Asahi’s full-year outlook for 2023 remains optimistic, with a revised performance expectation, particularly in terms of core operating profit and operating profit, largely supported by the robustness of the alcoholic beverage market in Japan.
Asahi’s year-on-year core operating profit is projected to grow by 3.2%, against its initial forecast at the start of the year. In actual currency terms, the core operating profit is also expected to climb by 4.2%.
“In the first six months, we achieved steady revenue and core operating profit growth, mainly driven by prudent pricing strategies that enhanced average selling prices,” commented Atsushi Katsuki, president and CEO of Asahi Group Holdings.
“Katsuki also highlighted that, even under the strain of significant cost pressures, the Asahi Group is strengthening its competitive position across different regions, thus improving profitability. He additionally stressed the revival in Japan’s market, supported by the growth of on-trade sales and key brands. “In anticipation of the liquor tax changes coming in October, we are strategizing to stimulate growth within the beer sector, inclusive of introducing new products,” he said.”
Outside Japan, Asahi Super Dry, the company’s flagship product, witnessed a 24% year-on-year growth in sales volume, mainly propelled by expansion in Asia, Europe, and Oceania.
With the sponsorship of the Rugby World Cup 2023 in France this September, Asahi is optimistic.
“Asahi Super Dry is the Official Beer, and we anticipate this will be a chance to display the brand’s prestige to a global audience and share the thrill,” Katsuki concluded.
