:. Food Industry News

Categories: Corporate Results

Kirin's H1 Falls Short of Target, Cuts Outlook

Source: Reuters
04/08/2008

Tokyo, Aug 4 - Japanese brewer Kirin Holdings said on Monday its first-half operating profit rose 11 percent thanks to its acquisition of a drugmaker but fell short of its own forecast, hurt by a weak non-alcohol beverage unit. The second-largest beer maker in terms of domestic shipments also cut its full-year forecasts.

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The company said its operating profit came to 47.6 billion yen ($443 million) for the six months ended in June, up from 42.9 billion yen in the same period a year earlier but below its forecast of 59 billion yen.

Its profit was lifted by the acquisition of drugmaker Kyowa Hakko Kogyo Co Ltd but the firm's non-alcohol beverage unit suffered amid fierce competition.

Japan's beer market has been shrinking for years as its population ages and tastes diversify. For the first six months of this year, domestic beer shipments from Japan's five major brewers dropped a combined 4.2 percent and Kirin's shipments fell 5.9 percent.

For the full year, the company forecast 152 billion yen in operating profit, compared with a mean forecast for 158.8 billion yen based on the views of 10 analysts surveyed by Reuters Estimates. Shares of Kirin were up 1 percent for the year as of Friday's close, outperforming a 14.5 percent fall in the benchmark Nikkei average.



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