JAPAN: Kirin Holdings H1 slide, but target met

By just-drinks.com editorial team | 6 August 2007

Kirin Holdings, the umbrella company to Kirin Brewery, has posted a slide in net profit for the first half of 2007.

The Japanese company said late last week that net profit for the first six months of this year fell by 12% year-on-year, to JPY16.8bn (US$142.3m). The slide was still above the JPY15bn target Kirin had set for the period last month.

The company blamed higher costs of raw materials and weak beer sales for the fall.

Sales rose by 6.8%, meanwhile, hitting JPY836bn for the period, just missing last month's target of JPY837bn.

Looking forward, Kirin raised its net profit forecast for the full year to JPY56bn from JPY55bn. Group operating profit should come in at JPY11bn, down from an earlier forecast of JPY121bn. The company's group sales estimate was also cut, to JPY1.83 trillion from JPY1.88 trillion.

The company's international beverage alcohol operations, which include its stakes in Lion Nathan and Philippines conglomerate San Miguel Corp., are also run as a separate business under the Kirin Holdings structure. The restructuring began as part of the company's plans to focus on the Kirin brand, boost group earnings and generate 30% of sales and profits from markets outside Japan by 2015.

Sectors: Beer & cider, Soft drinks, Wine

Companies: Kirin, Lion Nathan