Asahi Group (2502) Q4 2024 earnings summary

Executive summary

• Core Operating Profit rose 3.7% year-over-year, with strong performance in Japan and Europe offsetting a decline in Oceania due to challenging market conditions.

• Revenue rose to JPY 2,939.4 billion, with profit attributable to owners of parent up 17.1% year-over-year to JPY 192.1 billion.

• Basic earnings per share grew to JPY 126.7, reflecting a 17.3% increase year-over-year, adjusted for a 3-for-1 stock split.

• Cash flow generation increased, enabling a dividend payout ratio above 40% a year ahead of plan.

• Total comprehensive income declined to JPY 307.4 billion from JPY 460.5 billion, mainly due to lower translation differences on foreign operations.

Financial highlights

• Revenue grew 2.1% year-over-year to JPY 2,939.4 billion, driven by premiumization and price revisions, especially in Europe.

• Core Operating Profit reached JPY 285.1 billion (+3.7% YoY); profit improved in Japan and Europe but declined in Oceania.

• Operating profit increased 9.8% YoY to JPY 269.1 billion, aided by asset sales in Japan.

• Free cash flow was JPY 306.0 billion, supported by working capital improvements and asset sales.

• Cash flows from operating activities improved to JPY 403.7 billion, up from JPY 347.5 billion year-over-year.

Outlook and guidance

• 2025 revenue forecast: JPY 2,970.0 billion (+3.3% YoY constant currency); Core Operating Profit forecast: JPY 287.0 billion (+3.2% YoY constant currency).

• Operating profit expected to decline 2.6% YoY in 2025 due to absence of prior year asset sale gains.

• Profit attributable to owners of parent forecast to decrease 7.6% YoY in 2025, mainly from lower net financial income; basic EPS forecast at JPY 118.08.

• Dividend per share to rise to JPY 52.0 in 2025; payout ratio to reach 44%.