Asahi operating profit falls 4.1% to 95.7 billion yen in third quarter

Key Facts

Asahi Group said on November 13 that operating profit on a constant-currency basis fell 4.1% year on year to 95.7 billion yen in the three months ended September 30. The decline came amid higher costs and sales pressure in most regions, according to Reuters coverage of the results. Quarterly revenue, by contrast, rose 0.2% to 844.7 billion yen. The report said resilience in European markets helped support revenue and offset some of the sales weakness. The divergence between revenue growth and lower profit highlights the impact of costs on the group’s profitability during the quarter.

Sales in Japan and East Asia fell 0.7% during the quarter, while sales in Asia Pacific declined 1.3%. By contrast, sales in Europe rose 2.8%, making it the only region among those cited to record growth. Reuters coverage said revenue benefited from some resilience in European markets, despite weak sales in most regions. The company did not directly link the decline in Japan and East Asia sales to the fall in margins. The report attributed margin pressure to higher costs, particularly those related to Middle East disruptions.

The report also said major system disruptions in 2025 and unusual weather during the peak season affected revenue. The company said, "Higher costs weighed on margins, particularly because of disruptions caused by the Middle East." This came alongside differing sales trends across regions, with declines in Japan and East Asia and Asia Pacific, and growth in Europe. These factors show simultaneous pressure on revenue and costs in the quarter’s results. The available figures did not provide a quantitative breakdown of each factor’s impact on profit for the period.

For the nine months ended September 30, reported revenue rose 7.1% and core operating profit increased 2.3%. On a constant-currency basis, however, revenue fell 0.3% and core operating profit declined 6.5%. The chief executive said performance during the period benefited from strong growth for the Asahi Super Dry brand, particularly in China, Europe and North America, alongside improved cost efficiency and favorable foreign exchange effects. Global sales of Asahi Super Dry rose 33% in the nine months, while sales of Peroni Nastro Azzurro increased 6%, excluding domestic markets. These cumulative results present a different picture from the quarter’s profit alone, combining brand growth with the effects of exchange rates.

Over the same period, the average unit price for beer, beer-like beverages and non-alcoholic beer-flavored beverages rose 2.1% year on year. The company said the increase came as its premium-product strategy advanced. This rise adds to sales growth for the Asahi Super Dry and Peroni Nastro Azzurro brands over the nine months. The chief executive also said improved cost efficiency and foreign exchange effects supported the group’s performance during the period. These indicators show supporting factors over the nine months, alongside the pressures that emerged in third-quarter operating profit.

Asahi kept its forecast for fiscal 2026 unchanged, projecting revenue growth of 11.2% and core operating profit growth of 10.6% year on year. On a constant-currency basis, the company expects revenue growth of 5.4% and core operating profit growth of 3.2%. The chief executive said the company would continue investing to deliver growth, alongside measures aimed at repairing its profit structure and improving capital efficiency. The company added that it would work to complete the acquisition of Diageo’s East African operations and prepare for their smooth integration. These are the main steps the company outlined for the next phase, with its annual outlook remaining at previous levels.