Guinness Anchor net profit jumps 30pc in Q4

Guinness Anchor Bhd (GAB)(3255), the country's biggest brewer, says its fourth-quarter net profit rose 30.2 per cent to RM35.7 million, mainly due to higher sales from promotions. 
 
This included promotions that ran during the Chinese New Year and the 2010 Fifa World Cup, where Tiger was the best selling beer, GAB managing director Charles Ireland said.

Revenue for the three-month period was up 11.7 per cent to RM308.7 million.

For the full fiscal year ended June 30 2010, GAB posted a net profit of RM152.7 million, 7.5 per cent more than in 2009. Revenue was up by 5.7 per cent to RM1.36 billion.

"This has been the best results for GAB. We are aiming for another record year this year, which will make it the 10th consecutive year of growth in revenue, net profit and market share for the company," he said.
GAB has set aside capital expenditure of RM50 million in the current financial year.

It will invest in crates and bottles as well as produce and supply high quality products to ensure its brewery matches international standards.

Ireland told reporters yesterday at GAB's results briefing in Petaling Jaya, Selangor, that it will be introducing new products over the next six months, mainly in the malt liquor segment, to drive sales.

"My main key performance indicators are to grow revenue and profits. We will also work on building individual brand performance and volume, market share, free cash flow and improving operating margins," he said.

Meanwhile, Ireland said he does not expect a rise in excise duty on beer and stout in the upcoming national budget, as the current duty is already high.

He said any new increase will dampen the market as industry volumes will fall. It may also lead to a rise in smuggling of beer.

"If you have high rates, revenue will drop and we may have to raise prices of our goods. People may then choose to drink cheaper liquor than a quality brand," he said.

By Sharen Kaur