JAPAN: Kirin Holdings' H1 sales rise despite domestic beer worries

• Group net profits up 355% to JYN59.6bn (US$597m)
• Sales increase 5.2% to JYN1.1tn
• Operating profits climb 12.6% to JYN55.7bn
• Domestic beer sales drop 3.5%

Kirin Holdings has posted a big jump in first half profits as it continues to benefit from the sale of its stake in Fraser & Neave this year, however domestic beer sales remain a concern.

Group net profits in the six months to the end of June hit JYN59.6bn (US$597m), a 355% year-on-year rise, the Japanese brewer, soft drinks maker and pharmaceutical firm said today (2 August). H1 sales were up by 5.2% to JYN1.1tn, while operating profits climbed by 12.6% to JYN55.7bn.

Sales in Kirin's domestic beverage division fell by 0.5% to JYN538.6bn in the half, with Kirin Brewery sales dropping by 3.5% to JPY333.5bn. Overall Japanese domestic beverage operating profits fell by 2.5%, while domestic brewer Kirin Brewery saw operating profits drop by 2.4%.

Kirin Brewery sales were previously weak in Q1, when the Fraser & Neave sale helped the group return to profit.

Kirin's international beverage units performed better, with overseas integrated beverages posting a 18.6% sales increase in the first half to JPY347.2bn and operating profits climbing by 4.6%. 

The company said Brazil showed signs of a “moderate slowdown” in beer consumption, and a boost in first-half sales had been achieved only through increased spending to “reinforce brands”.

Kirin Holdings share priced ended today's trading up 2.3% at JPY1,531.

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