Kirin Holdings 1Q Group Net Loss Y2.11 Billion Vs Y6.16 Billion Profit Year Earlier

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Kirin Holdings Co. (2503.TO) Friday said that it swung into the red during the first quarter ended March 31, due to a special loss related to a quake-damaged brewery in northern Japan.
The Tokyo-based company, which holds a 100% stake in Australia’s Lion Nathan Ltd. (LNN.AU) and 48% of the Philippines San Miguel Brewery Inc., posted a net loss of Y2.11 billion, compared with a year-earlier profit of Y6.16 billion.
Kirin halted operations at its Sendai brewery, which was hit by the massive March 11 earthquake and tsunami, leading the company to book a special loss of Y5.1 billion for the first quarter for related damage.
The disaster damaged four of 15 large beer storage tanks at the plant and flooded the brewery’s packaging facilities and warehouse. But key parts of the brewery, including much of the equipment, weren’t damaged, thus Kirin aims to restart operations at the plant by the autumn.
Sales climbed 10.4% to Y488.92 billion from Y442.77 billion. The steep gain is ascribed to strength in its drug-making unit Kyowa Hakko Kirin Co. In addition, sales got a one-off boost from a change in the business year of its Australia-based National Foods Ltd.
Kirin’s quarterly operating profit gained 38% to Y32.99 billion, buoyed by strong sales and cost reductions.
For the full fiscal year, Kirin kept unchanged the earnings outlook it released earlier this year. The company continues to predict a group net profit of Y58 billion, an operating profit of Y152 billion and sales of Y2.140 trillion.
But the company said that as it is hard to gauge the impact of power outages on economic activity and the prospects of uncertain consumer sentiment, these debilitating effects have not been factored into the earnings outlook. Kirin added that it may release an outlook revision if necessary, after mapping out the impact of the quake.
Overall beer shipments in March for Japan’s five top brewers including Kirin plunged 10.9% from a year earlier, their first double-digit decline in 14 months, due to lost output at quake-damaged breweries, according to beer shipment data by the companies.
Kirin’s earnings are based on Japanese accounting standards.