Suntory Beverage and Food has recorded a 3.3% growth in revenue and 49.5% increase in profit in the first quarter (Q1) of 2018 led by Asia’s revenue growth of 12.7% to JPY44.3bn and segment profit rise of 136.5% to JPY17.5bn. Credit: Suntory Beverages and Food.

Japanese Suntory Beverage and Food has recorded a 3.3% growth in revenue and 49.5% increase in profit in the first quarter (Q1) of 2018 led by Asia’s revenue growth of 12.7% to JPY44.3bn and segment profit rise of 136.5% to JPY17.5bn.

Overall revenue was JPY277.1bn and profit totalled JPY22.3bn in Q1 2018.

Asia was the only region that experienced an increase in both revenue and profit during the quarter.

The company attributed its success in the region to marketing activities for its Vietnamese energy drink Sting and ready-to-drink tea Tea+ expanded sales for its core brands and its joint venture with PepsiCo, Suntory PepsiCo Beverage Company, which initiated operations on 5 March.

Suntory’s Japanese business saw a 2.1% increase in revenue to JPY150.5bn, but a reduction in segment profit of 36.6% to JPY5.2bn. The company focused on enhancing production efficiency but this was partially offset by product mix change and the occurrence of costs in preparation of the peak season.

Cold weather affected the company’s European business with sales of Orangina and Oasis declining in France and sales of Lucozade and Ribena declining in the UK. The region’s revenue increased by 4.6% to JPY51.8bn, but segment profit declined 24.4% to JPY3.7bn.

Revenue in Oceania declined 0.7% to JPY13.6bn and in the Americas decreased 8.2% to JPY17bn. Oceania’s segment profit increased 7.6% to JPY1.5bn and Americas’ rose 0.2% to JPY1.5bn.

Suntory’s operating income grew by 27% from JPY20.9bn in Q1 2017 to JPY26.6bn to Q1 2018, but comprehensive income fell by 75.2% from JPY1.9bn to JPY481m.