Kirin posts 40 percent profit jump

Kirin is Japan's No. 2 brewer behind Asahi, but the largest in Asia Story Tools

TOKYO, Japan -- Kirin Brewery reported group net profit rose 40.7 percent in 2002, aided by strong sales of non-beer products and cuts in marketing costs.

Kirin is Japan's No. 2 beermaker, behind Asahi Breweries.

But Kirin remains Asia's largest brewer, with a 46 percent stake in Australasian beer and wine group Lion Nathan and a 15 percent stake in San Miguel, the Philippines largest food and beverage group.

Kirin said Wednesday its full-year consolidated net profit reached 32.54 billion yen ($270.4 million), up from last year's profit of 23.12 billion yen.

Revenue rose 1.4 percent year-on-year to 1.58 trillion yen ($13.2 billion).

Kirin shares closed 1.96 percent higher at 885 yen, compared with a decline of 0.17 percent for the benchmark Nikkei 225 average, and a 0.36 percent fall for the broader Topix index.

Kirin shares have now put on more than 17 percent since the end of December, compared with a gain of just over one percent for the Topix.

Beat expectations

Kirin's group net profit beat expectations of a 30.25 billion yen profit from 12 analysts polled by research firm Multex.

Kirin is forecasting a 2003 group net profit of 39.00 billion yen on sales of 1.67 trillion yen.

The brewer offset a falling thirst for beer at home with a lineup of non-beer alternatives, including fruit-flavoured cocktails made with soda water, and profited from acquisitions made in Asia.

It also cut operating costs faster and deeper than domestic rivals to counter price competition.

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