Kirin Holdings Co.’s efforts to expand overseas has hit a snag, as the Japanese beermaker predicted its first annual loss since 1949 after an economic slump in Brazil hurt its operations in the South American country.
Tokyo-based Kirin forecast a net loss of 56 billion yen ($461 million) for 2015, reversing its expectations of 58 billion yen in profit made in October, it said Monday. Its Brazil Kirin unit is expected to result in special losses about 114 billion yen, after deducting 27.2 billion yen in goodwill from the 2011 acquisition, citing deteriorating Brazilian economic conditions and stagnated consumption, as well as a drop in the local currency.
Kirin has been among Japanese beermakers 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.
Kirin shares rose 3.1 percent to 1,771 yen by the close of trading in Tokyo, reversing from a decline of as much as 3.8 percent after the Nikkei newspaper reported the potential loss earlier.
Kirin also cut its operating income projection to 122 billion yen from 130 billion yen, while maintaining its planned full-year dividend of 38 yen, according to the statement.
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