Brazil Kirin plans to invest $ 1 billion until next year

In relying on the parent company Kirin Holdings and the BNDES, will not lack money to Brazil Kirin (ex-Schincariol) proceed with its expansion plans in Brazil, despite the consumption of beer in the country have lost steam this year.
The Japanese holding company, in addition to giving up the remittance of dividends last year, is willing to contribute capital when needed for Brazil to invest in Kirin operation, said Fábio Marchiori, Brazil's financial Vice President and member of the Board of Kirin Kirin Holdings, value.
Owner of the Nova Schin and labels, in addition to the Wanton sodas Schin and Itubaína, the Kirin is Brazil, this year, closing contracts with suppliers of machines, for example-in the amount of r $ 500 million for capacity expansion and improvement in automation, without immediate cash disbursement. The value includes $ 50 million to build a windfarm in Ceará, in partnership with the Portuguese Tecneira.
For 2014, are provided for approximately r $ 500 million more. "For now, we are expanding existing factories-no new units," he said.
With 10 thousand employees, the Brazil Kirin has 13 factories in 11 States. Last year, the company invested r $ 400 million in the expansion of Alagoinhas (Bahia). Visited by Value, the headquarters in Itu (SP), brings together 3 thousand people.
Although they are not priority, acquisitions in Brazil are not discarded by Marchiori.
The Kirin Brazil studies the possibility to capitalise (turn into equity) $ 316 million in dividends to pay old, whose distribution date expired in December. There is an alternative, also under consideration by the Council, to extend the payment.
In either case, the idea is to preserve the ability of Brazil's investment, Kirin is also to own generation of box. At the end of 2012, the company had debt of R $ 758,6 million and deposits of $ 287.5 million.
Will also help to honor investments, a credit of $ 500 million with BNDES, of which have already been cashed out $ 224 million.
For now, the possibility of an initial public offering of shares is not on the radar. "We are in constant contact with banks. Can be an alternative in the future ".
The Brazil Kirin left a loss of r $ 157 million in 2011 and profited $ 132 million last year. Reversal of provision for contingencies and doubtful accounts helped in the improvement in the result, as well as a stronger control of operating expenses, which grew at slowest speed sales.
Net revenue grew 16.6% in 2012, to $ 2.7 billion. This year, the IRS must move less-about 10%, said Marchiori.
In a year when the beer industry can't expand volumes, the Brazil Kirin has managed to gain a small market share betting on extreme niches: the special beers (Baden-baden and Eisenbahn) and low price (Glacial and Degree).
These two segments have grown "high single digits", by volume, in the first half. In turn, the category "mainstream"-represented by the Nova Schin Brazil flagship brand, Kirin-sales logs smaller than in 2012.
The poor performance of the intermediate price category is also felt by competitors Ambev and Heineken.
Marchiori designs 5% growth and 10% by volume this year, pulled mainly by category of non alcoholic (water, soda and juice), which represents 40% of Brazil's recipe Kirin.
For beers, Marchiori provides a lower level of expansion in the coming years. "The bulk of the migration of low incomes for the middle class was in the past. The industry needs better reposition the products to meet the consumer, which is more selective. "
For Marchiori, premium and special labels (more expensive) must make the sector grow faster in value than in volume from now on.