Asahi Earnings: Strong Profit Growth Lifted by Successful Price Hikes and On-Trade Recovery in Japan

Narrow-moat Asahi Group Holdings’ double-digit profit growth in the first quarter was no surprise following rival Kirin’s strong results. Core profits, in particular for the domestic brewery and beverage business, came in ahead of the company’s internal targets thanks to successful prices hikes with limited volume impact and continued on-trade volume recovery. While cost increase was in line with guidance, management has taken a cautious stance on the profit outlook for the rest of the year given uncertainty surrounding consumer sentiment in the core markets and commodity price trends.