Japanese brewer, Sapporo Breweries Ltd., has cut its group net profit forecast for the year to December 2002 by 23.8% to Y1.6 billion ($13.55m).
Sapporo attributed the downgraded forecast to sluggish sales of beer and “happoshu” low-malt beer and reduced profit margins due to the popularity of larger bottle sizes of mineral water. The group’s restaurant division is also set to turn in a net loss which is also thought to be a factor in the reduced group earnings.
The company has reduced its group sales forecast by 1.9%, from its forecast in August, to Y512 billion. “Sales of beer and happoshu are falling and we are seeing reduced profitability in our alcohol, beverage and drinking water operations,” Sapporo said.
