Japan: Kirin Brewery’s profit rises 4.4% due to higher demand for alternative beers
Kirin Brewery Co., Japan's biggest beverage company, said 2006 profit rose 4.4 percent as increased demand for alternative beers and soft drinks pushed up sales, Bloomberg reported February 7.
Net income rose to 53.5 billion yen ($445 million), or 55.98 yen per share, from 51.3 billion yen, or 53.23 yen per share, in 2005, the company said in a statement to the Tokyo Stock Exchange today. Sales rose 2.1 percent to 1.67 trillion yen.
The Tokyo-based company, which wants to become Asia's biggest brewer, is strengthening international operations through seeking business partners and has pooled 300 billion yen for investments. Kirin expects to achieve sales of 2.15 trillion yen in 2009 after buying a 50.12 percent stake in Mercian Corp., the nation's biggest wine producer, in December.
Kirin had forecast a 2006 profit of 54 billion yen on sales of 1.68 trillion yen. For 2007, the company estimates profit will rise 2.8 percent to 55 billion yen on sales of 1.88 trillion yen, up 13 percent.
Shares of Kirin rose 0.5 percent, or 10 yen, to 1,913 yen in Tokyo trading today after it announced full-year earnings results.
Kirin, which celebrates its 100th anniversary this year, said last month it plans to sell 197.5 million cases, up 5.6 percent from a year earlier, of regular, low-malt and alternative beers in 2007 as domestic shipments fall. The brewer said it sold 187.1 million cases, up 4.8 percent from a year, in 2006.
Japan's domestic shipments of regular, low-malt and alternative beers by Japan's five biggest brewers fell 2.1 percent in December to 50.44 million cases, the Brewers Association of Japan and Brewers Council of Happoshu Taxation said in a report last month.
The maker of Kirin Lager and Ichiban Shibori is strengthening international operations through seeking business partners in its bid to become Asia's biggest brewer.
Kirin holds a 46.13 percent stake in No. 2 Australian beer maker Lion Nathan Ltd. and also holds a 20.02 percent stake in Philippine brewer San Miguel Corp.
The company is constructing a factory and promoting its Kirin brands in China.
Kirin said on Dec. 19 it completed the acquisition of a 50.12 percent stake in Mercian for 24.8 billion yen. The beer- maker bought 67 million shares after 1,745 shareholders offered to sell their stock in the company.
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