Tokyo, Feb. 15 - Sapporo Holdings Ltd. said Friday its net profit in the fiscal year ended December more than doubled, but it lowered the previous earnings target for 2008 amid rising raw materials costs and sluggish domestic beverage sales.
The Japanese beer and soft drink maker said its net profit in 2007 rose to Y5.51 billion from Y2.34 billion a year earlier on the consolidation of Toronto-based Sleeman Breweries Ltd., cost cutting and asset sales.
In its business plan announced separately, however, Sapporo effectively cut its earnings forecast for 2008.
In the previous business plant from 2006 to 2008, Sapporo projected operating profit of Y28 billion and sales of Y520 billion for 2008.
In the new plan through 2009, Sapporo now aims for operating profit of Y13.5 billion and sales of Y449.2 billion for this year. For 2009, it targets Y15.5 billion in operating profit and Y451 billion in sales.
It also has a long-term target of Y40 billion in operating profit and Y600 billion in sales for 2016.
Along with steps to strengthen its beverage and real estate operations, Sapporo has earmarked Y45 billion for strategic investments and Y20 billion for capital investments through 2009. It will try to cut its debts by Y35 billion in two years.
Sapporo also said it plans to extend the deadline for its takeover defense measures by one year with its shareholders' approval at their next meeting on March 28. It said these measures aren't designed to prevent every attempt to increase shareholdings in the company.
New York-based Steel Partners Japan Strategic Fund wants to boost its stake in the beer maker to 66.6% from 17.6%.