Sapporo records ¥1.7 billion loss in first half as promotional costs soar

Kyodo

Sapporo Holdings Ltd. said Tuesday it posted an operating loss of ¥1.7 billion in the first half against a year-before profit of just over ¥3 billion as promotional costs expanded despite robust sales growth.

The parent of Sapporo Breweries Ltd. also reported a group net loss of ¥2.9 billion, almost unchanged from ¥2.97 billion a year earlier.

Sales expanded 16 percent from a year earlier to ¥223.04 billion after adding sales by U.S. beverage maker Silver Springs Citrus and an increase in sales of Sapporo liquor products.

The company said it stepped up marketing for its domestic liquor business, food and soft drink operations, and also saw costs rise for its operations in Vietnam.

For the full year, Sapporo Holdings revised its group net profit estimate downward from an earlier ¥6.3 billion to ¥3.6 billion. The new estimate is 13.8 percent higher than the previous year.

The sales projection for the full year was meanwhile lowered to ¥493 billion from ¥510 billion, but remains 9.7 percent higher than the previous year.