Malaysia: Guinness Anchor Bhd achieves 43% growth in net profit in Q3 ended March 31

Malaysian brewer Guinness Anchor Bhd's (GAB) said its net profit for the third quarter ended March 31 improved 43% to RM46.46 mln from RM32.60 mln partly due to the later timing of the Chinese New Year celebration, a traditional driver of sales for the malt liquor market.

Revenue for the period rose 18% to RM370.82 mln from RM314.83 mln previously while basic earnings per share increased to 15.38 sen from 10.79 sen.

Managing director Charles Ireland said GAB's third-quarter performance had further extended its position as Malaysia's malt liquor market leader.

He added that as at end of financial year 2009 (ended June 30), GAB recorded eight successive years of volume, revenue and profit growth.

“We are pleased with our overall performance,” he said.

In a note to Bursa Malaysia, the company said it believed the malt liquor market was firming up and would continue to show upside momentum.

“Overall, competition is expected to remain intense,” it said, adding that smuggling remained a major concern and continued to have a negative impact on both the industry and Government revenue.

An analyst with a local bank-backed brokerage said GAB's Q310 earnings were within expectations due to the timing of the CNY. He also said he was upbeat about the local malt liquor market.

“With the better economic outlook, especially with the expected gross domestic product growth of 10% in the first quarter 2010, consumers are more confident and less cautious about their spending.

“We do expect sales in the next (current) quarter to be better, given that the World Cup is just around the corner.

“As the event starts in June, outlets like coffee shops and pubs will be stocking up on their supply ahead of the event,” he said.

GAB's year-to-date net profit rose to RM117.03 mln from RM114.60 mln previously while revenue improved to RM1.05 bln from RM1.01 bln. Basic earnings per share increased to 38.74 sen from 37.93 sen.