Asahi Group reports 2.1% revenue growth, strengthens global expansion strategy
JAPAN – Asahi Group Holdings, Ltd., a leading Japanese beverage company, has reported a 2.1 percent year-on-year (YoY) increase in revenue, reaching JPY 2,939.4 million (US$19.59M) for the fiscal year ended December 31.
The company attributed this growth to strategic price revisions and its ongoing focus on premiumization across key markets.
Core operating profit rose by 3.7 percent YoY to JPY 285.1 million (US$1.9M), supported by strong performances in Japan and Europe, as well as improved cost efficiencies.
However, these gains were partially offset by a decline in profits in Oceania, where market conditions continued to deteriorate.
“This solid progress was driven by sustained increases in unit sales prices owing to prudent pricing strategies and premiumization in each region, as well as advancing reforms in earnings structures across all regions,” said Atsushi Katsuki, President & Group CEO of Asahi Group Holdings.
“By enhancing our capabilities to generate cash flow, we successfully reduced Net Debt/EBITDA to 2.5 times, meeting our financial soundness policy guidelines.”
The company’s international expansion strategy contributed significantly to its financial results, with increased revenue from Europe and Oceania.
Despite higher costs of sales, Asahi improved its gross profit to JPY 1,097,681 million (US$7.3M), up from JPY 998,933 million (US$6.66M) in the previous year.
In Japan, the company experienced higher earnings driven by growth in non-alcoholic beer sales and premium beverage categories. The liquor tax revision also spurred a shift in consumer demand toward the beer category, further supporting sales growth.
Meanwhile, in Europe, the premium category, including non-alcoholic beer, emerged as a key driver of revenue expansion.
Beer, beer-like beverages, and beer-taste beverages recorded an overall 2.6 percent YoY increase in unit sales prices across Japan, Europe, and Oceania, highlighting sustained demand for premium offerings.
Asahi Super Dry, a flagship brand in Asahi’s global portfolio, achieved a 10 percent YoY increase in sales volume outside Japan, driven by strong demand across Asia and Europe. Total sales volume of Asahi’s five global brands grew by 5 percent YoY.
Looking ahead, Asahi Group forecasts revenue growth of 3.3 percent YoY and projects core operating profit to rise by 3.2 percent.
To optimize its global operations, the company plans to shift from a four Regional Headquarters (RHQ) structure to a three RHQ structure in April 2025, integrating the Oceania and Southeast Asia RHQs.
Asahi’s commitment to corporate sustainability has also been recognized, with the company securing a place on CDP’s prestigious double “A List” for climate change and water security for the seventh consecutive year since 2018.
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