Kirin Holdings Q1 performance by division - Focus
Kirin's Lion unit posted a near-15% fall in sales in Q1
Earlier this month, Kirin Holdings reported a marked slide in net profits on a 6.1% fall in sales from the first three months of 2016. Here, just-drinks breaks down the group's performance in the quarter.
- Japan Integrated Beverages - Sales -1.6% to JPY235.9bn
Kirin Brewery - Sales -6.1%
Volumes for Kirin's beer and beer-like offerings (including happoshu) came in below expectations, falling by 11%. However, sales of flagship brand Ichiban Shibori were in line with the broader market in Japan, while RTD and spirits sales "exceeded projections".
Kirin Beverage - Sales +7.2%
The soft drinks and water unit posted an 11.9% lift in volumes in Q1, with Japanese tea, coffee, functional beverages and water all delivering double-digit volume increases. Kirin's black tea stable - the unit's largest volume contributor - was up by 9.8% to just under 12m cases in the quarter. "A structural reform for cost reduction and improved profitability has made steady progress." said Kirin. Operating profits from the unit hit internal targets for the period.
- Overseas Integrated Beverages - Sales -14.8% to JPY155.3bn
Lion - Sales -14.7%
Kirin's Australian drinks subsidiary posted a 2% dip in beer, spirits and wine sales volumes, with dairy and soft drinks falling by 12.4%. In Australian Dollars, sales in value terms fared better, decreasing by 3.8% compared to a near-15% slide when converted into Japanese Yen.
Brasil Kirin - Sales -36%
The Brazilian division, created when Kirin bought Schincariol in 2011, has struggled of late: In February, the company took a JPY141.2bn impairment charge in the country. However, beer volumes came in flat (-0.4%) in Q1, after slumping by 16.8% in 2015. Soft drinks volumes leapt by 12.9%, having reported a 15.1% decrease in the 12 months of last year. Kirin said it is looking to "optimise production sites" in the country and is also exploring the possibility of selling some assets.
Myanmar Brewery - Sales hit JPY6bn, no prior-year comparison
The group toasted the performance of Myanmar Brewery, which exceeded the internal target for operating profits in the quarter. However sales in both value and volume terms came in below Kirin's expectations.
Companies: Kirin Brewery Co.
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