Sapporo : Notice of the Posting of Other Operating Expenses Regarding the Partial Removal of Existing Facilities by a Consolidated Subsidiary and its Capital Investment
December 22, 2021 at 01:13 am
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December 22, 2021
Company Name
Sapporo Holdings Limited
Representative
Masaki Oga
President and Representative Director
Stock Code
2501
Listed on
Tokyo Stock Exchange
Sapporo Securities Exchange
Inquiries
Tatsuya Komatsu
Director of Corporate Planning Department
Tel: 81-3-5423-7407
Notice of the Posting of Other Operating Expenses Regarding the Partial
Removal of Existing Facilities by a Consolidated Subsidiary
and its Capital Investment
Sapporo Holdings Limited (the "Company") hereby announces that the Company, at its Board of Directors meeting held today, passed a resolution regarding partial removal of existing facilities at the Sendai Plant (location: Natori City, Miyagi Prefecture) of Sapporo Breweries, Ltd. (the "Sapporo Breweries"), a consolidated subsidiary of the Company, and its capital investment in manufacturing facilities for RTD(*) at the same site.
Abbreviation of "Ready to Drink." Alcoholic beverages such as Can chu-hi, which are packaged and ready for immediate consumption upon purchase.
1. Objectives of the Capital Investment
Sapporo Breweries has decided to invest in manufacturing facilities for RTD at the Sendai Plant and to partially remove existing facilities in connection with the investment, with the aim of responding to further demand growth in the growing RTD market.
2. Overview of the Capital Investment and the Partial Removal of Existing Facilities
Capital Investment in Manufacturing Facilities for RTD
Overview of the Capital Investment: Manufacturing facilities for RTD and ancillary facilities
Investment Amount: Approx. 3.6 billion yen
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Schedule: Construction in 2022 and 2023. Scheduled to start operation in October 2023
Partial Removal of Existing Facilities
Overview: Removal of manufacturing facilities for Beer taste alcoholic beverages (beer and new- genre beer.
Removal and related costs: Approx. 3.7 billion yen
Schedule: Stop production of barrel products in August 2022 and can products in December 2022.
※The Sendai Plant of Pokka Sapporo Food & Beverage Co., Ltd. will continue its operations.
3. Future Outlook
Of the approximately 3.7 billion for expenses related to the partial removal of existing facilities, approximately 1.5 billion (roughly estimated) is to be posted as other operating expenses for the Company's fourth quarter of the fiscal year ending December 31, 2021. These expenses have been incorporated, to a certain extent, into the consolidated forecasts for the fiscal year ending December 31, 2021. The capital investment in manufacturing facilities for RTD has no impact on the consolidated results for the fiscal year ending December 31, 2021.
The Company will duly disclose the impact on its results for the next and subsequent fiscal years, as necessary.
4. Others
Please also refer to Sapporo Breweries' news release announced today.
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Disclaimer
Sapporo Holdings Limited published this content on 22 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2021 06:12:00 UTC.
Sapporo Holdings Limited is a holding company organized around 4 sectors of activity:
- production of alcoholic beverages (65.7% of net sales): beer, wine, spirits and liqueurs;
- production of non alcoholic beverages (28.9%): carbonated drinks, juice, mineral water. The group also proposes food products (snacks, yoghurts, etc.);
- development and management of real estate assets (5.3%);
- other (0.1%).
Japan accounts for 84.9% of net sales.
Sapporo : Notice of the Posting of Other Operating Expenses Regarding the Partial Removal of Existing Facilities by a Consolidated Subsidiary and its Capital Investment