Suntory Beverage & Food reported higher revenue and profit for the first half, with sales volume in Japan also growing on contributions from its core brands and new product Guilty carbonated drink NOPE. Revenue was approximately ¥899.9 billion, operating profit was ¥74.0 billion and profit for the period was ¥42.1 billion.
Suntory Beverage & Food’s first-half results for the fiscal year ending December showed revenue up 11.6% year on year to ¥899.9 billion, operating profit up 3% to ¥74.0 billion and profit attributable to owners of the parent up 2.3% to ¥42.1 billion. Increased revenue from proactive marketing investment and new product launches more than offset the impact of foreign exchange and higher costs.
In Japan, sales volume increased 2% on the strength of core brands and contributions from the new product Guilty carbonated drink NOPE. This represented relatively strong growth against an estimated 2% decline for the overall market from January through June. Revenue in the Japan segment was ¥360.1 billion and segment profit was ¥21.3 billion, also supported by the impact of price revisions.
The overseas segment reported higher revenue across Europe, Asia, Oceania and the Americas, with growth in sales volume in Asia and contributions from the Vietnam market particularly notable. New product launches, including BOSS Coffee Energy, and local marketing investment were effective.
Management said that growth in the Japanese market had come in 4 percentage points above the market, as anticipated, and indicated that promotions for NOPE and the rollout of products through vending machines had produced favorable results.
Overall, foreign exchange tailwinds and growth in overseas markets also contributed, with revenue increasing in every region, including the overseas segment.