Japanese food and beverage group Kirin Holdings saw its quarterly losses widen on one-off securities and impairment charges.
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The company, which owns Australia’s National Foods and Dairy Farmers, booked a net loss of JPY6.17bn (US$63.3m) for the three months to the end of March. The result compared to a net loss of JPY675m a year earlier.
Kirin blamed its deeper losses on “factors including loss on devaluation of investment securities and loss on impairment”.
Nevertheless, the group saw turnover jump 13.3% to JPY487.2bn, as sales from its soft drinks and foods business rose 4.2%.
Kirin’s operating income increased by 2.5% to JPY9.4bn, although its soft drinks and food division made an operating loss of JPY3.9bn.
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By GlobalDataThe company said its sales of dairy products and flavoured milk in Australia were “sound”, while raw dairy input costs had “showed signs of easing”. However, Australia remained a “tough consumer market”, Kirin said.
The integration of Dairy Farmers, the Australian dairy business Kirin bought last year, had been “progressing steadily”, the company said.
Kirin stuck to its full-year forecast of JPY2.3tn in sales, which would equate to a fall of 0.2% on 2008.
The group also reaffirmed an operating income forecast of JPY121bn, a drop of 17.1%.
Net income is expected to drop by 28.9% to JPY57bn, Kirin said on Friday (8 May).
