Kirin faces fall in profits for first half of 2007
Prior to the release of its first half results, Kirin Holdings, Japan’s second-biggest brewer, issued a profit warning, saying that its first-half profit would fall by a smaller-than-expected 21 percent due to lower promotion costs, and a robust performance from its partner San Miguel.
For the six months ended 30 June 2007, Kirin expects profits to come in at around YEN 15 billion (USD 121 million), 50 percent higher than expected. That would, however, still fall short of the YEN 19 billion booked in the same period a year earlier.
The beverages group will provide details about its full-year outlook when it reports interim results on 3 August 2007.
Faced with a saturated domestic market, Kirin, a long-time partner of San Miguel, which owns 20 percent of the Philippine group, is seeking to accelerate acquisitions overseas and non-core businesses and has put aside YEN 300 billion for strategic investments from 2007 to 2009, it was reported.
Kirin is likely to bid for up to 49 percent of National Foods, which San Miguel is willing to sell. San Miguel bought the Australian company for AUD 1.9 billion (USD 1.6 billion) in 2005.
Analysts have forecast Kirin’s annual net profit to climb to YEN 55 billion from YEN 53.5 billion in 2006.
New Zealand – Lion Nathan sells Auckland brewery site
Australia’s number two brewer said at the end of July that it would sell its Auckland brewery site to AMP Capital Investors for NZD 162 million (AUD 147.1 million).
Lion Nathan reported that NZD 50 million (AUD 45.4 million) of the sale proceeds for the Auckland brewery would be realised in this financial year, with the rest payable when Lion Nathan leaves the site. This arrangement means that Lion Nathan will continue to operate from the Newmarket site for around four years while a new facility is being constructed.
In a statement the brewer said that building a new manufacturing plant and warehouse in Auckland would allow it to better align its production and supply chain with the needs of the market, optimise productivity and improve efficiency in energy and water use.
A decision on a new site was likely before the end of November.
The new manufacturing plant and warehouse would cost about NZD 250 million (AUD 227 million), it was said.
Lion Nathan reported that in the nine months ended June 2007, beer volumes in both New Zealand and Australia - excluding UK licensed and international export volumes - grew by 0.8 percent to 6.57 million hl.
In Australia, volumes grew by 0.6 percent to 5.3 million hl as the trend continued of growth in national brands and a fall in regional and value brands.
The portfolio of "power" brands - including Tooheys New, Tooheys Extra Dry, XXXX Gold and Hahn Super Dry - grew by 3.5 percent. Lion Nathan said that the overall beer market continued to grow.
In New Zealand, where Lion Nathan is the leading brewer, beer volumes were up by 1.9 percent to 1.3 million hl, mostly due to core and premium brand growth.
