TOKYO: Asahi Group Holdings Ltd expects its financial results to be delayed by more than 50 days after the end of the fiscal year, following a crippling cyberattack.
A “short-term impact” to earnings in Japan can’t be avoided, chief executive officer Atsushi Katsuki said in a briefing here yesterday, as he apologised for the troubles caused by the supply chain disruptions. He said a new date for the company’s results will be announced once decided.
The company reported partial earnings for the nine months ended Sept 30, showing mixed revenue performance in Europe and Asia-Pacific (Apac) – where operations were unaffected by the cyberattack. Sales in Europe fell 3% from a year ago and Apac posted a 3.1% increase.
A ransomware attack in late September shut down key internal systems that manage the brewer’s orders and shipments. The company has since been forced to process transactions manually, slowing operations and leaving room for domestic rivals to capture market share. Katsuki clarified that no ransom money was paid.
Asahi also disclosed that as many as 1.9 million cases of private information belonging to customers and employees, including names, addresses and phone numbers, may have been compromised in the attack.
Asahi’s Japan beer sales fell by just under 10% year-on-year in October, while competitor Kirin Holdings Co reported a surge of as much as 19%, according to monthly data released earlier this month. Sapporo Holdings Ltd saw sales volume rise 13% and Suntory Holdings Ltd remained flat.
The damage was less severe than initially feared, said Euan McLeish, an analyst at Sanford C. Bernstein Japan K.K, who revised his fourth-quarter operating profit forecast to 18 billion yen (US$115mil) from a projected 15 billion yen loss in a Nov 17 note.
The disruption comes at a critical time, as December is typically Asahi’s strongest month in Japan. Its flagship Super Dry beer alone accounts for 12% of annual domestic sales.
Japan’s beer market continues to evolve, with consumption stagnating amid an ageing and shrinking population. Brewers have increasingly looked overseas for growth, yet the domestic market remains vital, contributing 46% of Asahi’s total revenue last year.
Shares of Asahi have since regained the ground lost in the immediate aftermath of the cyberattack. — Bloomberg
