Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
Sapporo Holdings Revises Consolidated Full-year Earnings Forecast
1) Revision of consolidated full-year earnings forecast for fiscal 2010 (January 1 – December 31, 2010) (millions of yen, except percentages and per-share data)
Net income per share (yen)
|Previous forecast (A)|
|Current forecast (B)|
|Change (B - A)|
|For reference: Fiscal 2009 results|
2) Reason for revision
Sapporo Holdings expects ordinary income of 14.3 billion yen, exceeding previous guidance of 11.0 billion yen by 3.3 billion yen, and net income of 10.7 billion yen, exceeding previous guidance of 7.0 billion yen by 3.7 billion yen.
The company expects operating income to exceed its previous forecast by 1.9 billion yen, mainly due to concentration of resources on core brands in its Japanese Alcoholic Beverages Business as well as production cost reductions. Also buoyed by a positive contribution from equity in income of affiliates and a reduction in net financial loss, Sapporo Holdings consequently expects ordinary income and net income to exceed their previous forecasts.
3 Feb. 2011