JAPAN: Suntory Beverage & Food posts H1 profits jump
- Net profits up 96% to JPY12bn (US$121m)
- Sales up 11% to JPY518bn
- Operating profits rose 26% to JPY27.6bn
- Overseas segment profits up 15%
Suntory Beverage and Food listed on the stock market last month
Suntory Holding's soft drinks and food unit has doubled first-half profits in its first financial statement since it started trading on the Tokyo stock exchange.
Net profits rose by 96% to JPY12bn (US$121m) in the six months to the end of June, Suntory Beverage & Food said today (6 August). Net sales climbed by 11% to JPY518bn over the same period, while operating profits were up by 26% to JPY27.6bn.
Profits from the group's domestic unit increased by 32% to JPY16.9bn on the back of a 3.1% sales lift to JPY331.5bn. International profits were higher, at JPY22.2bn, a 15% increase, despite smaller sales of JPY186.5 , a 28% increase over last year).
Suntory, which also produces whisky and beer, said its jump in food and beverage profits was down to cost-cutting measures and a weaker Japanese yen that helped boost overseas trade.
Suntory Beverage & Food joined the Tokyo Stock Exchange on 3 July after an initial public offering that raised about US$3.9bn. Its parent company, which remains unlisted, has said it will use the cash to fund overseas acquisitions.
Today, Suntory said its Orangina Schweppes Group faced a difficult economic environment in Europe but that its new Vietnam beverage JV with PepsiCo has “achieved steady business expansion”.
In Japan, Pepsi products grew sales volume “considerably”, because of increases for Pepsi NEX and Pepsi Special, Suntory said.
Looking ahead, the company said expectations of a economic recovery in Japan are rising because of a increase in consumer spending.
The Suntory group also produces whisky and beer.
To read the company's official statement, click here.
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