Asahi Group (2502) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 10.1% year-over-year to JPY 1,379.0 billion, driven by price revisions and premiumization across all regions.

• Core Operating Profit increased 12.6% year-over-year to JPY 115.9 billion, with strong cost management offsetting profit declines in Oceania.

• Profit attributable to owners of parent rose 16.1% year-over-year to JPY 76.4 billion.

• Basic earnings per share increased to JPY 150.72 from JPY 129.86 year-over-year.

• Total comprehensive income grew 17.2% year-over-year to JPY 404.8 billion.

Financial highlights

• H1 revenue: JPY 1,379.0 billion (+10.1% YoY); Core Operating Profit: JPY 115.9 billion (+12.6% YoY).

• H1 Operating Profit: JPY 104.1 billion (+8.4% YoY).

• H1 Net Income attributable to owners: JPY 76.4 billion (+16.1% YoY).

• EBITDA for H1: JPY 183.2 billion (+11.4% YoY).

• Gross profit for H1: JPY 510.5 billion, up from JPY 447.9 billion year-over-year.

Outlook and guidance

• Full-year revenue forecast revised to JPY 2,950.0 billion (+6.5% YoY); Core Operating Profit guidance at JPY 287.0 billion (+8.8% YoY).

• Profit attributable to owners of parent projected at JPY 193.0 billion (+17.6% YoY).

• Basic earnings per share forecast is JPY 126.94, reflecting the stock split.

• On a constant currency basis, FY2024 revenue is expected to grow 2.7% and Core Operating Profit 4.3% YoY.

• Free cash flow for the year expected at JPY 225.0 billion; annual dividend per share increased by JPY 20 (pre-stock split).