Suntory is looking to double its annual sales by 2020

Suntory is looking to double its annual sales by 2020

Suntory Holdings is looking to boost group annual sales to JYN4tn (US$39bn) by 2020 helped by acquisitions through its new Beam unit, according to reports.

Nobutada Saji, the Japanese firm's president, told a press conference that around a quarter of its group sales are expected to come from Beam, which it acquired last month for US$16bn, Reuters reported today (15 May). The JYN1tn sales target for Beam-Suntory will mean more acquisitions are needed, Saji reportedly said.

The target of JYN4tn for group annual sales represents a doubling of Suntory's revenues last year. Around JYN1tn of sales is expected to come from beer by 2020.

The group will also look to raise JYN300bn in sub-ordinated loans and JYN500bn through long-term borrowing or bond issuance to finance the purchase of Beam, Saji reportedly said.

Suntory's head said it expects to be able to recover the funds paid out for Beam in around 15 years.

Late last year, the company's Beverage and Food unit acquired the Lucozade and Ribena brands from the UK's GlaxoSmithKline for US$2.11bn.

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