E-Malt.com News article: 683

The Japanese brewer, Asahi Breweries Ltd., said on February 21 its operating profit fell 11% in 2002, a decline attributed to the weak sales of its flagship "Super Dry" beer brand. That pushed Japan's top beer maker to report its first decline in consolidated revenue since 1979/80. Group sales fell from Y1,433 billion to Y1,375 billion. The company’s annual net profit to December 2002 totaled Y14.75 billion, up 8.4% from 2001. But Asahi was upbeat about the current year, forecasting that it will post a group net profit for 2003 of Y26 billion, representing a 76.2% improvement on 2002. Group sales are forecast to rise by 6.7% to Y1,468 billion.

Underlining the difficulties facing Japan's brewers, third-ranked Sapporo Breweries Ltd said earlier that its group net profit fell 73.4% in 2002 due to a decline in sales of beer and its cheaper low-malt "happoshu".

Kirin Brewery Co Ltd trumped both Asahi and Sapporo on Wednesday by unveiling a 41% rise in group net profit to 32.5 billion yen ($275 million) for 2002, powered by sales of fruit-flavoured cocktails and cuts in marketing costs. Kirin had also moved much earlier to diversify its product line-up, starting with multiple happoshu brands from the mid-1990s.

"A prolonged economic malaise and weak demand from poor consumer spending engulfed the alcohol industry last year," said Sugao Nishikawa, vice president of Asahi Breweries.

The earnings announcement came just as stock market trading closed. Asahi also announced plans to buy back up to 50 million of its own shares worth 50 billion yen or about 10% of its shares outstanding.


24 February, 2003