Kirin Holdings Co.'s efforts to expand overseas have hit a snag, with the beer giant predicting its first annual loss since 1949 after an economic slump in Brazil hurt its operations there.
Tokyo-based Kirin forecast a net loss of ¥56 billion for 2015, reversing its expectations of ¥58 billion in profit made in October, it said Monday. Its Brazil Kirin unit is expected to log special losses of about ¥114 billion, after deducting ¥27.2 billion in goodwill from the 2011 acquisition, citing deteriorating Brazilian economic conditions and stagnated consumption, as well as a drop in the local currency.
Kirin and other Japanese beer companies are seeking acquisitions abroad to offset falling consumption at home. Kirin in 2011 acquired Brazil's Schincariol Participacoes e Representacoes in a deal valuing the brewer at about $3.62 billion at the time. Most recently, Kirin bought a controlling stake in Myanmar Brewery Ltd. for $560 million in August.