Asahi Group (2502) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2025 was JPY 2,154.8 billion, with core operating profit at JPY 202.4 billion; Europe and Asia Pacific segments reported lower-than-expected revenue, but core operating profit was in line with plan.

• Profit attributable to owners of parent dropped 26.2% YoY to JPY 102.8 billion, impacted by lower operating profit and higher interest rates.

• Consolidated operating profit contracted 18.0% YoY, mainly due to impairment losses in East Asia and Southeast Asia alcohol beverages and system disruption expenses.

• Segment reporting was revised to "Japan & East Asia," "Europe," and "Asia Pacific."

Financial highlights

• Revenue for 9M 2025 rose 0.6% YoY to JPY 2,154.8 billion, driven by price revisions in Japan & East Asia and increased non-alcohol beverage sales in Asia Pacific.

• Core operating profit decreased 4.6% YoY to JPY 202.4 billion, with cost efficiencies in Europe offset by declines in Japan & East Asia and higher companywide expenses.

• Operating profit dropped 18.0% YoY to JPY 158.7 billion, reflecting impairment losses and system disruption costs.

• EBITDA for the nine-month period decreased 3.7% YoY to JPY 304.3 billion.

• Adjusted profit attributable to owners of parent fell 9.9% YoY to JPY 126.6 billion.

Outlook and guidance

• Full-year 2025 revenue forecast at JPY 2,950.0 billion (+0.4% YoY), with core operating profit expected at JPY 290.0 billion (+1.7% YoY).

• Operating profit is projected to decrease 5.2% to JPY 255.0 billion, and profit attributable to owners of parent to fall 12.8% to JPY 167.5 billion.

• Adjusted profit attributable to owners of parent is forecast at JPY 177.5 billion, down 3.0% YoY.

• Free cash flow is expected to decrease significantly to JPY 130.0 billion from JPY 306.0 billion in the prior year.

• Japan & East Asia revenue forecast to grow 3.3% YoY, core operating profit to rise 5.5% YoY; Europe revenue expected to decline 0.7% YoY but core operating profit to increase 3.2% YoY; Asia Pacific revenue forecast to grow 4.4% YoY, core operating profit to rise 2.3% YoY.