Kirin Holdings Co. has raised its annual forecast 5.3 percent on currency gains.
Net income may total ¥60 billion for the year ending Dec. 31, compared with the May estimate of ¥57 billion and ¥80.2 billion earned last year, Kirin said in a statement Thursday. It maintained the forecast for annual sales of ¥2.3 trillion.
Kirin and other domestic beverage makers are seeking acquisitions and partnerships to expand overseas sales as their home market contracts amid a shrinking population. Kirin, Japan's largest beverage maker, aims to merge with rival Suntory Holdings Ltd. and has spent more than $7 billion in the past two years in Asia, including its plan to take full control of Australian brewer Lion Nathan Ltd.
"Kirin will proceed with merger talks with Suntory honestly and quickly," Chief Financial Officer Yoshiharu Furumoto said at a news conference.
For the six months that ended June 30, Tokyo-based Kirin reported net income of ¥15 billion, down 82 percent. The company beat its May earnings estimate as it had a gain of ¥13 billion because of a stronger-than-expected Australian dollar.
Kirin and Suntory said last month they're in the early stage of merger discussions. The move would create one of the world's biggest beer makers, which may challenge market leader Anheuser-Busch InBev NV. Suntory, based in Osaka, isn't publicly traded and is controlled by President Nobutada Saji and the founding family.