Cost cutting boosts Kirin Holdings’ food profits
* Food and soft drink profits up 56.4%
* Full-year group profits up 76.8%
* Upped full-year profit forecast
Kirin Holdings’ food and soft drinks division has booked an increase in full-year operating profits, driven by cost reductions made by the firm during 2010.Operating profit from the division climbed 56.4% to JPY11.10bn (US$133m) in 2010, the firm reported yesterday (10 February). Sales, however, dropped 13.2% to JPY638.10bn as a result of a change in the firm’s accounting period.
The Japanese food and beverage group said group net profit in 2010 slumped by 76.8% year-on-year, dropping to JPY11.39bn. Sales slipped slightly, by 4.4% to JPY2.18trn, while operating profits boasted an 18% jump to JPY151.61bn.
“The global economy slowly recovered this consolidated fiscal year due to the economy stimulus measures taken in various countries,” Kirin said yesterday. “While the Japanese economy is also slowly improving as consumer spending rebounds, recovery efforts seem to be relaxing.”
Looking to 2011, Kirin, which owns Australian food and beverage business Lion Nathan National Foods, said it expects net profit to hit JPY58bn, a five-fold increase. Sales are forecast to slip slightly on last year, reaching around JPY2.14trn.
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