Kirin targets profitable 2016 after Brazil writedown
- FY net loss of JPY47.3bn (US$416m) after JPY32.4bn year prior
- Sales flat at JPY2.2tn
- Operating profits up 9% to JPY124.8bn
- Domestic beverage sales climb 3%
Kirin is to restructure in Brazil
Kirin Holdings has made profit-making its top priority this year after a writedown in Brazil sunk FY income.
The Japanese conglomerate yesterday forecast a JPY60bn (US$527m) net profit for calender 2016 on a 3% sales decrease. For 2015, net losses totalled JPY47.3bn because of a JPY141.2bn impairment charge on Kirin's struggling Brazilian unit. Sales were flat at JPY2.2tn.
The JPY60bn profit forecast is almost double Kirin's performance in 2014, when net profits stood at JPY32.4bn.
The company had warned of today's loss in December, blaming a fall in the Brazilian real and weak consumer demand in the country. At the time, Japanese media reported that it would be Kirin's first full-year loss since it listed its shares in 1949.
Today, Kirin said it plans structural reform in Brazil while "competitiveness in existing businesses will be reinforced through investment".
In FY results, Kirin's Japan Integrated Beverages Business unit increased sales by 3% to JPY1.2tn, with operating profits flat at JPY48bn.
The Oceania Integrated Beverages Business unit saw sales fall 7% to JPY438.6bn and operating profits up 74% to JPY48bn. The Other Overseas Integrated Beverages Business unit, which includes Brazil Kirin, was down 17% in sales at JPY185.5bn and took a JPY15bn operating loss.
Kirin's other business units, which include pharmaceuticals and food, increased sales and operating profits.
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