Japan: Kirin Brewery Co. to post 17% profit rise in H1
Kirin Brewery Co., Japan's second-biggest beer maker, will likely post a 17 percent increase in its half-year operating profit thanks to brisk sales of its low-malt and no-malt beer drinks, the Nihon Keizai business daily reported on July 07, Reuters accordingly reported July 07.
The paper said Kirin was likely to report a group operating profit of around 44 billion yen (US$380 million) for the six months ended June, beating its forecast by some 4 billion yen. If its sales in July and August remain strong, the company may revise up its full-year forecast, it added.
A Kirin spokeswoman said its half-year results were not likely to be too far from the reported figures, but declined to confirm the numbers. The company is scheduled to announce its earnings results for the January-June period on Aug. 10, she said. For the year to December, Kirin had forecast a group operating profit of 117 billion yen, lower than the mean market projection of 125.6 billion yen in a poll of 12 analysts by Reuters Estimates.
Kirin's share in the overall beer market has been inching up with the popularity of its low-malt "happoshu" and no-malt beer-like drink products, while bigger rival Asahi Breweries Ltd. (2502.T: Quote, Profile, Research) is struggling to keep up its share due to its weakness in the growing beer-like drink market.
Japanese beer makers have developed malt-free beer-like drinks, or so-called "third-type" beers, in an effort to jump-start the shrinking domestic beer market.
Under the country's current alcohol-tax system, happoshu and third-type beers - which are made from such ingredients as hops, bean protein and caramel - escape high taxation because their ingredients mean they are not classified as beer. The Nihon Keizai business daily reported last week that Asahi's half-year operating profit was likely to fall short of target, and the maker of Super Dry beer may revise down its full-year outlook if alcohol sales are weak in July.
Shares in Kirin were up 1 yen at 1,820 yen as of 0131 GMT, underperforming a 0.51 percent rise in the Nikkei average <.N225>. (US$1=115.10 Yen)
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