National Foods owner Kirin Holdings reports drop in profits
Kirin Holdings, owner of Australian dairy giant National Foods, has reported a 42% drop in net profits for the first nine months of 2010, due to lower sales and one-off charges for restructuring and pensions.
Profits slipped to JPY 24.2 billion (A$295 million) for the nine months to the end of September, Kirin said. The Japanese food and drinks group was dragged down by foreign exchange losses, restructuring costs, higher taxes and a one-off charge related to its pension scheme.
Net sales for the period also fell, by 4% to JPY 1.6 trillion. Kirin reported a 16% drop in soft drinks and food sales, which it blamed on a change in reporting period for National Foods.
There was better news for the group in alcoholic drinks. Japan’s beer market remains under pressure from an ageing population and tough economic conditions, but Kirin hailed stronger-than-expected growth for its alcohol-free beer, Kirin Free.
Group operating profits increased by 21% to JPY 113.6 billion for the nine months.
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