Asahi has reported a 3% revenue decrease, its full-year 2020 results have shown.
The Japanese beverage group noted that its core operating profit fell by 21% year on year, ‘due to [the] impact of [the] COVID-19 pandemic.’
The company noted that its alcohol business declined in revenue and profits, compared to 2019, mainly due to the sales decrease in its on-trade business, despite promoting sales for the off-trade channel and control of overall fixed costs.
Asahi’s soft-drink arm also showed a year-on-year decline in revenue and profits due to weak vending-machine sales, despite concentrating on core brands and promoting control of overall fixed costs, it noted.
According to the report, the company’s food business showed a fall in revenue and profits due to the sales decrease of its Mintia brand, despite promoting sales to capture the staying-at-home demand and control of overall fixed costs.
CUB Acquisition
The company noted that, in 2020, it ‘expanded foundations for growth’ through the acquisition of Australian brewer Carlton & United Breweries (CUB).
Asahi noted that it has built a global platform with three core pillars – Japan, Europe and Australia – with the addition of the CUB business.
Looking Ahead
Looking ahead to 2021, the company noted that it is targeting a 13% revenue growth and 30% core operating profit growth, driven by the recovery of existing businesses and the impact from the consolidation of the CUB business.
© 2021 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign up to subscribe to Checkout.
