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JAPAN: Kirin Group H1 sales slip as Japan sales tax hike bites

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  • First-half net profits tumble 76.5% to JYN14bn (US$137.2m) 
  • H1 net sales slip 3.6% to JYN1.06tn
  • Operating profits fall 16.8% to JYN50.3bn
  • H1 sales for Australian unit, Lion, dip 0.6%

Kirin Holdings has reported a slip in first-half sales as its domestic drinks business suffered from effects of a rise in sales tax.

Kirin has felt the impact of Japans rise in sales tax

Kirin has felt the impact of Japan's rise in sales tax

The Tokyo-based conglomerate, which also operates in the food, pharmaceutical and flowers industries, said that net sales in the six months to the end of June fell by 3.6%. Net profits dived by 76.5% against a tough comparable, following the sales of its stake in Fraser & Neave last year

Operating profits in the six months were down by 16.8%.

In Japan, the company said  the alcohol and soft drinks market saw increased demand before the sales tax hike, and “plunging” demand after the measure was introduced. Japan raised its sales tax by 5% to 8% in April.

Sales at its Kirin Brewery division fell by 4.8% to 317.7bn, but its Japan beverage unit saw sales lift by 1.1% to JYN161.4bn in the period.

The group's Australasian drinks unit, Lion, reported flat sales at AUD2.7bn in the half-year, as the business pointed to “highly competitive market conditions” in New Zealand and falling volumes in its Australian beer business.

In Brazil, where Kirin owns the Schincariol brewer, the group reported a sales lift of 5.1% to JYN88.3bn in the six months, but beer and soft drinks volumes were down year-on-year. 

To read the company's full statement, click here.


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