Business

Saturday October 24, 2009

Carlsberg bullish on new Singapore unit


SUBANG: Carlsberg Brewery Malaysia Bhd is optimistic that its acquisition of Carlsberg Singapore Pte Ltd will boost its business for the financial year ending Dec 31, 2010 (FY10).

Shareholders at its EGM yesterday passed the resolution approving Carlsberg Malaysia’s acquisition of the entire equity interest in Carlsberg Singapore comprising one million ordinary shares for RM370mil cash.

Managing director Soren Holm Jensen said the market outlook would also depend on whether there would be a further excise duty hike by the Government during the tabling of Budget 2010 (which was announced later yesterday).

“Pending what happens with the (excise) duties, we maintain a positive outlook. Assuming there is no change, we are reasonably optimistic about 2010,” he said after the EGM.

(The Government did not announce any increase in excise duty for beer and stout yesterday.)

Jensen said the Singapore business would give the company better economies of scale.

From left: Carlsberg Brewery Malaysia chief financial officer Chong Choon Yeng, Soren Holm Jensen, chairman Datuk Lim Say Chong and executive director Datuk Chin Voon Loong toast after the EGM.

However, he declined to comment on the impact of the acquisition on Carlsberg Malaysia’s earnings.

“We will announce our third-quarter results very soon, so we can’t disclose anything at this point in time.”

Jensen also said the better outlook was due to the timing of the Chinese New Year (for 2010), which is traditionally a period of strong sales for the company.

Due to the festival occurring earlier this year (January rather than February), its sales were recognised in the fourth quarter of FY08 rather than the first quarter of FY09.

“The first half of 2009 was a challenge partly because the timing of Chinese New Year was unfavourable this year as opposed to previous years.

“For 2010, the timing is back to normal,” he said.

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