Asahi Group (2502) Q2 2026 earnings summary

Executive summary

• Core operating profit (constant currency) fell 8.5% year-over-year, mainly due to lingering system disruption in Japan & East Asia and weak demand in Europe and Asia Pacific.

• Despite profit decline, results exceeded plan thanks to strict fixed cost controls in Japan & East Asia.

• Revenue for the six months ended June 30, 2026, rose 7.7% year-over-year to ¥1,463,963 million, with core operating profit up 1.5% to ¥111,354 million and operating profit up 56.2% to ¥144,143 million.

• Profit attributable to owners of parent increased 68.8% year-over-year to ¥99,148 million, and total comprehensive income surged 390.8% to ¥226,728 million.

• Strong cash flow from operating activities at ¥131,484 million, reversing a negative flow in the prior year.

Financial highlights

• H1 2026 revenue (constant currency) declined 0.6% YoY to JPY 1,464.0 billion; core operating profit dropped 8.5% YoY to JPY 111.4 billion.

• Operating profit (actual currency) surged 56.2% YoY, driven by land sales and lower integration expenses.

• Profit attributable to owners of parent rose 68.8% YoY, with adjusted profit up 8.2%.

• Free cash flow reached JPY 95.5 billion; interim dividend maintained at JPY 26 per share.

• Gross profit increased to ¥547,095 million from ¥503,340 million year-over-year.

Outlook and guidance

• Full-year 2026 revenue forecast is ¥3,220,000 million, up 11.2% year-over-year, with core operating profit expected at ¥291,000 million (+10.6%).

• Profit attributable to owners of parent projected at ¥194,000 million (+59.6%), with basic EPS of ¥129.71.

• Adjusted profit attributable to owners of parent forecast at ¥168,000 million (+14.3%).

• Plans to absorb cost increases and maintain advertising investments, aiming to exceed 2024 profit levels in 2027.

• Continued focus on premiumization, global brand growth, and efficiency reforms across all regions.