Asahi forecasts profit slip

Expansionist Japanese beer-maker Asahi Breweries Ltd expects its operating profit to dip by 2.7% in 2009 according to a statement issued to the Tokyo Stock Exchange.  

The brewery group, which has made two oversees acquisitions in as many months as the Japanese beer market continues to falter, said it expects to net a total of ¥50 billion before December 31^st this year. That would represent an 11% hike in net income from this year’s figure of ¥45 billion.  

Asahi expects operating profit to stand at ¥92 billion as 2009 draws to a close. By December 31^st last year, the firm said its operating profit stood at around ¥94.5 billion. In the statement Asahi said it anticipates net sales for 2009 to stand at just under ¥1.5 trillion, a 1.9% rise from last year’s figure.  

The contracting Japanese beer market – hit by a slowing birth rate and growth in demand for malt-free beer alternatives that are not taxed as heavily – has caused the top brewers in the country to begin looking to more lucrative markets oversees for acquisition targets.  

Asahi – Japan’s largest brew group – snapped up a 20% stake in China’s Tsingtao Brewery last month as world number-one A-B InBev continued shedding assets to pay off the $45 billion debt left by the A-B takeover. In December Asahi agreed to pay $794 for Cadbury’s Australian drinks division.  

Kirin Holdings Co is marginally Japan’s number-two brewer and it too is casting covetous eyes oversees. In January the 46% stake-holder in Australian brewer Lion Nathan announced plans to acquire a 42.25% share in the brewing arm of Philippine food and beverages giant San Miguel Corp.  

Asahi Managing Director Akiyoshi Koji reportedly told journalists at a briefing today in Tokyo that his firm will continue to pursue foreign opportunities as the domestic alcohol market continues to contract.