Asahi announced its H1FY2022 financial results earlier this month, reporting an increase of 11.4% year-on-year in revenue to hit JPY1.15tn (US$8.42bn) and a 1.9% increase in profit to hit JPY91bn (US$666mn).
Within its core APAC markets, Asahi Japan revenue grew 7.9% to JPY599.9bn (US$4.39bn) but profits grew just 0.1% to JPY42.8bn (US$313.2mn) whereas Oceania revenue grew 9.4% to JPY261.1bn (US$1.91bn) and profits grew 4% to JPY41.8bn (US$305.9mn).
The firm credited its positive results to its on-premise (40+% growth) and canned beer (26% growth) businesses in Japan, as well as craft beer (8% growth) in Australia, but acknowledged that in Australia price hikes had contributed towards profits in the region.
There are still multiple cost increases affecting [Asahis production and supply chains] across the group, the cost increase in the first half of the year has been just over JPY30bn (US$219.7mn) and we estimate that this is going to increase to approximately JPY80bn (US$585.9mn) for the entire year, Asahi CEO and Representative Director Atsushi Katsuki told investors when announcing the financial resuls.
In Japan, the main cost factors of concern are aluminum, fuel, PET resin and other supplementary materials, and Asahis prepared countermeasures for this region will be some price increases as well as an improvement of our product mix, in addition to promoting cost efficiencies by streamlining expenses and logistics.
In Oceania, the main cost factors here are aluminum, ocean freight and fuel, and we will be using a flexible pricing strategy here as well as utilizing cost synergies, reducing indirect costs and reducing marketing spend.
The firm is planning to introduce price hikes in Japan starting October 1 for beer-type beverages, RTD, other keg liquors, non-alcoholic beverages and domestic whiskeys, with these increases expecting to be in the range of 6% to 10%; as well as for soft drinks which are expected to see 4% to 16% increases.
This would be the first time that Asahi raises its prices in 14 years.
Given the somewhat unprecedented nature of the price increase, it remains to be seen how consumers react to the change, industry analysis experts Fitch Group highlighted in an Asahi-focused CreditSights report.
We do note though that in previous years, Japanese brewers have seen downtrading in beer preference to no or low malt beers that have benefitted from a lower tax regime, albeit new regulations aim to equalise regular beer with no/low-malt alternatives.
Previously we believed that Asahi was set to Outperform [in terms of market performance], but in light of relative value considerations this has been downgraded to Market Perform more attractive opportunities can be seen elsewhere in the brewer space.
Perhaps also due to concerns over how the upcoming price hikes will affect its market performance especially in Japan, Asahi has highlighted that it will be focusing on multiple strategies to accelerate its growth locally.
Canned beer is one of the businesses that we are running initiatives to strengthen, especially the Asahi Super Dry brand, said Katsuki.
One of the reasons we are so positive on this is because canned beer sales have been growing faster than the market as a whole over the past six months, with market growth at slightly below 10% from January to June 2022 but Asahi sales growing 26% and particularly Asahi Super Dry canned beer growing 9% in the same time.
Another area we will be focused on is in healthier product innovation, particularly sugar-free drinks. Here there have been multiple innovations including the Wilkinson Spicy Lemon Ginger sparkling water marketed as a sober curious item, and our Wakocha bottled tea made from 100% Japanese tea leaves.
We are also expanding our range of label-less products, a category which has increased by 87% since its inception, especially via e-commerce channels where such products have grown by 32%.
Asahis revenue and profit growth in Europe (22.8% to JPY265.2bn / US$1.94bn and 10.5% to JPY28.9bn / US$211.7mn respectively) were its healthiest amongst all of its major markets.
This was also strongly bolstered by its price hikes there, making it unsurprising that the firm hopes to repeat this measure of success in Japan but it has also made no promises that the price increases will be a one-time thing.
In Europe, we have increased unit prices by improving our various mix including on-premise recovery, and by raising prices but the issue is that we still need to continue responding to higher-than-expected commodity, energy, and other market price increases, said the firm.
[Right now we are looking to] accelerate sustainable top-line growth through growth investment in global brands, non-alcoholic beverages and RTD beverages here, but we will continue monitoring increases in input costs and pass them on to customers [if the need arises].
View original post here:
- Pope Francis to visit Asia and Oceania in September - Crux Now - April 16th, 2024 [April 16th, 2024]
- EY Weighs Another 100 Job Cuts in Oceania, The Australian Reports - Bloomberg - April 16th, 2024 [April 16th, 2024]
- Oceania Cruises Announces New 2025-2026 Tropics and Exotics Collection - Norwegian Cruise Line Holdings - April 16th, 2024 [April 16th, 2024]
- Pope Francis to visit 4 nations across Asia and Oceania in September - Vatican News - April 16th, 2024 [April 16th, 2024]
- Oceania Cruises Announces New 2025-26 Tropics and Exotics Collection - Cruise Industry News - April 16th, 2024 [April 16th, 2024]
- Pope Francis will head to Asia and Oceania in September for his longest foreign trip yet - America: The Jesuit Review - April 16th, 2024 [April 16th, 2024]
- Oceania Cruises Announces New Tropics and Exotics Collection for 2025-2026 - Porthole Cruise and Travel - April 16th, 2024 [April 16th, 2024]
- Per Berth Prices Rise for Oceania and Regent Newbuilds - Cruise Industry News - April 16th, 2024 [April 16th, 2024]
- Pope Francis to embark on tour of Southeast Asia, Oceania in longest papal trip - Bakersfield Now - April 16th, 2024 [April 16th, 2024]
- Pope will take his longest trip: to Asia-Oceania in September - Aleteia - April 16th, 2024 [April 16th, 2024]
- Asia/Oceania I: Korea, Republic maintain perfect record with another 3-0 win - Billie Jean King Cup - April 16th, 2024 [April 16th, 2024]
- Highlights of Billie Jean King Cup 2024 tennis tournament Asia-Oceania - Xinhua - April 16th, 2024 [April 16th, 2024]
- Oceania Cruises Announces New Tropics and Exotics Collection - Recommend Magazine - April 16th, 2024 [April 16th, 2024]
- VATICAN Pope Francis will be in Southeast Asia and Oceania from 2 to 13 September - AsiaNews - April 16th, 2024 [April 16th, 2024]
- Oceania Triathlon continental titles on the line in Taupo this weekend World Triathlon - World Triathlon - April 16th, 2024 [April 16th, 2024]
- DHL Express introduces dedicated flight between Sydney and Hong Kong to cater to Oceania-North Asia trade demand - payloadasia.com - April 16th, 2024 [April 16th, 2024]
- Vatican announces long-awaited papal visit to Asia and Oceania - Macao News - April 16th, 2024 [April 16th, 2024]
- EY confirms 148 jobs gone in mass redundancy round across Oceania - The West Australian - April 16th, 2024 [April 16th, 2024]
- Hosts Tonga launch campaign with dominant victory against American Samoa - Oceania Football Confederation - April 16th, 2024 [April 16th, 2024]
- Oceania Cruises unveils 2026 around the world voyage on Vista - TTG Asia - March 16th, 2024 [March 16th, 2024]
- Sea Control 501 Multilateral Approaches to Maritime Security in Oceania with Zach Ota | Center for International ... - CIMSEC - March 16th, 2024 [March 16th, 2024]
- Oceania set to open booking for $60K, 180-day around-the-world cruise - Business Insider - March 12th, 2024 [March 12th, 2024]
- Oceania Cruises Announces 2026 Around the World Voyage Aboard Its Newest Ship, Vista - PR Newswire - March 12th, 2024 [March 12th, 2024]
- The Oceania Vista will sail the world in 2026 - Travel Weekly - March 12th, 2024 [March 12th, 2024]
- Oceania Announces 2026 Around the World Voyage Aboard Vista - Cruise Industry News - March 12th, 2024 [March 12th, 2024]
- Oceania Championships: Record-breaking Samoan Opeloge and Australia's Elliott make moves in Olympic rankings - International Weightlifting Federation... - February 27th, 2024 [February 27th, 2024]
- Hawaii-based 'Indo-Pacific Support Cutter' focused on Oceania is on its first Pacific deployment - Honolulu Star-Advertiser - February 27th, 2024 [February 27th, 2024]
- PNG and Vanuatu to participate in inaugural FIFA Series - Football in Oceania - February 27th, 2024 [February 27th, 2024]
- OCEANIA/PAPUA NEW GUINEA - Escalation is feared after tribal conflict: The only way to avoid it is on-site dialogue - Agenzia Fides - February 27th, 2024 [February 27th, 2024]
- Brazil claim record-extending 6th FIFA Beach Soccer World Cup - Oceania Football Confederation - February 27th, 2024 [February 27th, 2024]
- NMI's Aiden Gimed wins silver in Oceania Weightlifting Championships - Marianas Variety News & Views - February 27th, 2024 [February 27th, 2024]
- Fiji U20s secures 39-25 win over Tonga at round 1 of Oceania Rugby U20s Challenge - Fijivillage - February 27th, 2024 [February 27th, 2024]
- Vakuruivalu wins bronze in the senior men's 109kg category at the Oceania Weightlifting Championship - Fijivillage - February 27th, 2024 [February 27th, 2024]
- 5G subs in SE Asia & Oceania to hit 550M by 2029-end - Nation Thailand - December 3rd, 2023 [December 3rd, 2023]
- AI image generator Stable Diffusion perpetuates racial and ... - University of Washington - December 3rd, 2023 [December 3rd, 2023]
- APCO and AIP partner to strengthen Oceania packaging industry - Packaging Gateway - December 3rd, 2023 [December 3rd, 2023]
- Solomon Islands to host OFC Women's Champions League in March - Friends of Football - December 3rd, 2023 [December 3rd, 2023]
- Tahiti tournament next prize for Wellington Olympic or Auckland City - Friends of Football - December 3rd, 2023 [December 3rd, 2023]
- Gordon Treanor joins $3bn drinks giant Suntory Oceania - The Shout - December 3rd, 2023 [December 3rd, 2023]
- LoL esports announces Japans LJL will join Oceania in PCS ... - Dexerto - December 3rd, 2023 [December 3rd, 2023]
- NZ Festival of Squash in Tauranga attracts top world and Oceania ... - Bay of Plenty Times - December 3rd, 2023 [December 3rd, 2023]
- Sisters Stephanie and Caley McNair gain international smallbore ... - Hawkes Bay Today - December 3rd, 2023 [December 3rd, 2023]
- Australian Superbike: Herfoss Earns Pole Position At "The Bend" - RoadracingWorld.com - December 3rd, 2023 [December 3rd, 2023]
- From boys' football to the Ferns in a year the rapid rise of winger ... - Friends of Football - December 3rd, 2023 [December 3rd, 2023]
- Global protein production expected to slow, but persist in 2024 - MEAT+POULTRY - December 3rd, 2023 [December 3rd, 2023]
- Catching up after the weekend? Heres all the top results and all on ... - Friends of Football - December 3rd, 2023 [December 3rd, 2023]
- All Blacks Sevens chart new beginnings in the HSBC SVNS Series - allblacks.com - December 3rd, 2023 [December 3rd, 2023]
- The Dominican Republic to host WBSC Americas U-15 Baseball ... - World Baseball Softball Confederation - December 3rd, 2023 [December 3rd, 2023]
- XXX BFA Asian Championship starts Sunday, qualifies three teams ... - World Baseball Softball Confederation - December 3rd, 2023 [December 3rd, 2023]
- Oceania - Students | Britannica Kids | Homework Help - March 31st, 2023 [March 31st, 2023]
- 5 Things You Should Know About: Oceania - WorldAtlas - March 4th, 2023 [March 4th, 2023]
- Oceania Healthcare (NZSE:OCA) Is Paying Out Less In Dividends Than Last Year - Simply Wall St - November 27th, 2022 [November 27th, 2022]
- 'Wingspan' Oceania Expansion Announced for Release Soon on iOS, Android, Switch, Xbox, and PC TouchArcade - Touch Arcade - October 30th, 2022 [October 30th, 2022]
- Oceania and Africa rising in university rankings - The PIE News - October 17th, 2022 [October 17th, 2022]
- South Asia And Oceania Pea Fiber Consumption Is Expected To Grow By Nearly 2x By 2032 - openPR - October 17th, 2022 [October 17th, 2022]
- PET Type Antiblock Masterbatch Market Size reach to 82.50 million USD in 2022-2027 With Impact of domestic and global market Top players: Review by... - October 17th, 2022 [October 17th, 2022]
- The Legend of Heroes: Trails to Azure launches on March 14, 2023 in North America; March 17 in Europe and March 24 in Oceania - RPG Site - October 17th, 2022 [October 17th, 2022]
- A 5G-proficient workforce will be in high demand: Nitin Bansal, MD, India & Head Networks, South East Asia, Oceania And India, Ericsson - The... - October 17th, 2022 [October 17th, 2022]
- Being in India more critical than ever: Ericssons Mirtillo | Mint - Mint - October 17th, 2022 [October 17th, 2022]
- Sedin lands in Melbourne with Steve de Mamiel at the helm - ARNnet - October 17th, 2022 [October 17th, 2022]
- Heavy Machinery Maintenance & Repair Demand Is Set To Reach A Valuation of US$ 284 Bn Billion 2032; Owing To Technology Integration into Service... - October 17th, 2022 [October 17th, 2022]
- WWII Ship Sunk In Oceania Shows Up In Dried-Up Californian Lake Officials Have No Idea How It Got There - IFLScience - October 15th, 2022 [October 15th, 2022]
- EY Oceania Strengthens Transformation Capability Through The Business Acquisition Of Red Moki - The Balance - October 15th, 2022 [October 15th, 2022]
- World University Rankings 2023: trends analysis - Times Higher Education - October 15th, 2022 [October 15th, 2022]
- How Africa is still paying the most for the lowest-quality internet - Benjamindada.com - October 15th, 2022 [October 15th, 2022]
- Global population hits 8 billion soon, but shrinks by 2100 - Big Think - October 15th, 2022 [October 15th, 2022]
- Banana Genomes Hint at Hidden Species We Urgently Need to Find - ScienceAlert - October 15th, 2022 [October 15th, 2022]
- Boxing: Kiwi heavyweight Hemi Ahio ready for the spotlight - New Zealand Herald - October 15th, 2022 [October 15th, 2022]
- An unbeatable moment to leverage: 2023 Womens World Cup must win hearts to change minds - The Guardian - October 15th, 2022 [October 15th, 2022]
- Architectural Services Sales Is Anticipated to Reach US$ 426.3 Bn by 2032; Rising Urbanization to Act as Key Drivers | Fact.MR's Study - GlobeNewswire - October 15th, 2022 [October 15th, 2022]
- Oceania unveils world cruise and other long voyages for 2025 - Travel Weekly - September 15th, 2022 [September 15th, 2022]
- Sailing to the Baltic Sea's top port cities with Oceania - Cruise Passenger - September 15th, 2022 [September 15th, 2022]
- Oceania Dairy tanker driver injured after truck rolls in South Cantebury - Stuff - September 15th, 2022 [September 15th, 2022]
- Study Highlights Wide Variation in Mortality of Spondyloarthritis, IBD Across the Globe - AJMC.com Managed Markets Network - September 15th, 2022 [September 15th, 2022]
- Earth had its 6th-warmest August on record - National Oceanic and Atmospheric Administration - September 15th, 2022 [September 15th, 2022]
- Humans have caused unprecedented changes to rivers - Earth.com - September 15th, 2022 [September 15th, 2022]
- From boat to bike: Georgie Howe's rapid rise to the pro ranks - CyclingTips - September 15th, 2022 [September 15th, 2022]
- Auckland City keep quadruple title hopes alive with Chatham Cup football final win - Stuff - September 15th, 2022 [September 15th, 2022]
- Cruise Lines That Don't Require a COVID-19 Vaccination - Cruise Fever - September 3rd, 2022 [September 3rd, 2022]
- Buh bye, buffets? Heres what its like to cruise now - The Boston Globe - September 3rd, 2022 [September 3rd, 2022]