The Japanese brewer Asahi Breweries has seen its losses for the first quarter increase on what it made in the same period last year. The business reported a loss in the first quarter to March of ¥7.4 billion. It recorded a loss of ¥2.1 billion in the same period last year.
However, the company took a one off loss of ¥4.4 billion on the sale of bottle maker Asahi Beer Pax to Ishizuka Glass Co in the quarter because of the difference between the book value and the price at which the unit’s shares were sold.
And Asahi Breweries kept intact the group earnings outlook it made in February, for the full year of a group net profit of ¥26 billion on sales of ¥1.468 trillion.
Asahi has come under increasing pressure from a fall in sales of both standard and low malt beer – happoshu – and higher promotional costs. Sales volumes fell 5.9% compared to the first quarter last year. Meanwhile sales and administrative costs rose to ¥90.1 billion from ¥80.3 billion a year earlier.
That said Japanese brewers commonly post losses for the first quarter, when demand for beer is a low and promotional costs ahead of the summer season are high.
And the company’s efforts to diversify into a full beverage group – rather than just a brewer – appear to be paying off as new non-beer liquor brands helped offset the sagging brewing results.
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