Sapporo Holdings suspended exports of its Pokka brand of beverages to the Middle East as escalating tensions involving Iran heighten concerns about demand.
Rising raw material costs, including aluminum, reduced first-quarter profit by about ¥1 billion ($6.33 million), a company spokesperson said Thursday, although those pressures have so far been absorbed through price revisions.
Pokka, Sapporo’s flagship soft-drinks brand, is central to its overseas beverages business, with a strong footprint in Southeast Asia and the Middle East. Its product line-up includes tea, coffee and sports drinks.
Sapporo expects shipments in the region to resume in October or later, though it cautioned that the outlook remains uncertain. With visibility limited, the brewer left its full-year guidance unchanged, maintaining its operating-income forecast of ¥6 billion, well below analyst expectations of ¥17.7 billion.
The company noted that the Middle East situation had only a modest impact on its consolidated first-quarter results. Sapporo posted a net loss of ¥878 million for the quarter, narrowing from a ¥4.22 billion loss a year earlier.
Shares fell as much as 12% in Tokyo on Thursday, the biggest drop since March 2011, following the earnings announcement. It closed the day 9.7% lower at ¥1,516.5.
AloJapan.com