Asahi Group (2502) Q1 2025 earnings summary

Executive summary

• Core operating profit rose 4.8% year-over-year on a constant currency basis, surpassing plan due to resilient Oceania performance and increased Japan profit from pre-price revision demand.

• Revenue for Q1 FY2025 rose 2.2% year-over-year to ¥630.4 billion, with core operating profit up 3.8% to ¥37.7 billion and operating profit up 4.3% to ¥33.9 billion.

• Profit attributable to owners of parent declined 9.7% year-over-year to ¥21.5 billion, and total comprehensive income turned negative at ¥-83.3 billion due to large foreign currency translation losses.

• Premiumization drove higher unit sales prices, especially in Europe, with global procurement and regional earnings reforms progressing.

• Basic earnings per share for Q1 FY2025 was ¥14.32, reflecting a 3-for-1 stock split effective October 2024.

Financial highlights

• Revenue increased 2.6% year-over-year, with Japan's alcohol beverages offsetting declines in Europe and Oceania.

• Gross profit increased to ¥223.0 billion from ¥216.9 billion year-over-year, while selling, general, and administrative expenses rose to ¥185.3 billion.

• Net cash used in operating activities was ¥-151.5 billion, a significant increase in outflow compared to ¥-63.0 billion in the prior year.

• Net cash used in investing activities was ¥-43.1 billion, and net cash from financing activities was ¥186.7 billion.

• Total assets decreased to ¥5,269.0 billion from ¥5,403.4 billion at year-end 2024.

Outlook and guidance

• Revenue forecast for FY2025 is JPY 2,970.0 billion (+3.3% year-over-year); core operating profit forecast is JPY 287.0 billion (+3.2%).

• Management targets exceeding the minimum planned increase in core operating profit, with continued investment and risk management.

• On a constant currency basis, full-year revenue and core operating profit are expected to grow 3.3% and 3.2% year-over-year, respectively.