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Asahi profit up 24% thanks to ‘price revisions’, says CEO
Japan’s Asahi Group saw growth in both revenue and core profit during the first quarter of 2023, its new financial results show.
Asahi Group’s total revenue grew by +7.9% year on year, driven largely through price revisions and premiumisation, the company’s CEO revealed today during the announcement of the group’s first quarter results.
Core operating profit grew by +24.3% year on year, which Asahi attributed to “improved cost efficiencies and improvements, despite cost pressures.”
All businesses achieved revenue growth, including a steady recovery in the group’s performance in Japan, where in the first quarter, COVID-19 restrictions were lifted for the first time since 2020.
However, the Asahi boss was keen to stress that it had seen growth across all regions.
“We made a good start to 2023, achieving strong first-quarter revenue and core operating profit growth despite significant ongoing cost pressures. We achieved this by advancing our ‘premium strategy’ and by enhancing unit prices through the implementation of prudent pricing strategies,” said Atsushi Katsuki, president and CEO, Asahi Group.
“Although many uncertainties remain in the operating environment, especially in how global inflation may play out, we’re confident in the resilience and growth potential of our businesses.”
According to Katsuki, the company is “achieving a steady recovery in business performance in Japan,” while demand is also solid in Europe and Oceania, “particularly in the premium categories.”
Asahi Super Dry and Peroni Nastro Azzurro, the top priorities in Asahi Group’s global brand portfolio, continue to grow, said Katsuki, “as we enhance and expand their lineups and bolster marketing.”
The CEO also pointed towards the successful launch of alcohol-free beer Asahi Super Dry 0.0%, which has contributed to the growth of the Asahi Super Dry brand.
High profile sponsorship deals are also helping to promote consumer awareness. Asahi Super Dry is the Official Beer of Rugby World Cup France 2023, and Katsuki said the company “intends to continue engaging in such partnerships”.
Forecast for the full year 2023 remains unchanged.