Asahi Group (2502) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was JPY 1,359.6 billion, up 0.6% YoY (constant currency), with Core Operating Profit at JPY 109.7 billion, down 3.2% YoY (constant currency), but up 10.1% YoY in reported terms.

• Profit attributable to owners of parent declined 23.1% YoY to JPY 59,310 million.

• Unit sales prices improved through premiumization and optimal pricing strategies.

• Management aims for upgraded Core Operating Profit target (+4.1% YoY constant currency) by investing in growth and accelerating reforms.

• Basic earnings per share was JPY 39.07, reflecting a 3-for-1 stock split.

Financial highlights

• Operating profit fell 11.4% YoY to JPY 92,269 million due to impairment losses and segment changes.

• Adjusted profit attributable to owners of parent was down 11.7% YoY, excluding one-off factors.

• Interim dividend increased by JPY 4; annual dividend forecast to rise by JPY 3, with Q2 dividend at JPY 26.00 and full-year forecast at JPY 52.00.

• Gross profit for H1 was JPY 503,340 million, down from JPY 510,472 million YoY.

• Net cash flows from operating activities turned negative at JPY -2,554 million.

Outlook and guidance

• Full-year revenue forecast revised to JPY 2,950,000 million (+0.4% YoY), with constant currency growth of +2.4% YoY.

• Core Operating Profit forecast revised up to JPY 290,000 million (+1.7% YoY), or +4.1% YoY constant currency.

• Profit attributable to owners of parent expected to decline 12.8% YoY to JPY 167,500 million.

• Management targets EPS CAGR in high single to low double digits and ROE of 11%+ through 2030.