US Markets
Beer Maker Asahi Posts Strong Profit Growth on Land Sale Gain; Revenue Up Modestly on Weak Japan Sales
Asahi Group (TYO:2502) reported a sharp, double-digit surge in first-half profit, driven by gains from land sales and a reduction in business integration expenses.Attributable profit for the first half jumped 69% to 99.1 billion yen, with operating profit up 56% to 144.1 billion yen, the company said Friday.Asahi earlier this year sold its Hakata plant in Fukuoka to Kyushu Railway (TYO:9142), also known as JR Kyushu.First-half revenue rose 7.7% to 1.464 trillion yen. The modest profit growth came as revenue in Japan and East Asia declined 2.2%, hampered by what the company termed "residual system disruption."The lingering operational challenge stems from a ransomware cyberattack in September 2025 that affected ordering, shipping and internal communication systems in Japan.Despite the headwinds, Asahi noted that "overall progress exceeded plan due primarily to controlled fixed costs in Japan & East Asia."Elsehwere, revenue in Europe was flat year over year, missing Asahi's outlook on lower demand in Poland and Romania. In Asia Pacific, revenue inched up 0.7%, also falling short of plan, the company said.Among its global brands, Asahi Super Dry volumes grew 31%, driven by China, South Korea, the UK and the US. Peroni Nastro Azzurro volumes grew 7%, boosted by the UK, Germany and Hungary following the "Only Peroni" campaign and a partnership with Scuderia Ferrari.For the full year, Asahi left its forecast unchanged, targeting revenue of 3.220 trillion yen, up 5.4%, while attributable profit is predicted to jump 60% to 194.0 billion yen.Looking ahead, the company said that "while progress varies across regions and additional costs from increased marketing investment and the situation in the Middle East are expected in H2," it aims "to achieve our full-year plan at the group level."Asahi projects a full-year dividend of 57 yen for the fiscal year ending Dec. 31, 2026.
TYO:2502TYO:9142
