Business

Saturday May 16, 2009

GAB profit for Q3 down on weaker sales due to early CNY

By RACHAEL KAM


KUALA LUMPUR: Guinness Anchor Bhd (GAB) reported net profit of RM32.6mil in the third quarter of the financial year ending June 30.

This was 10.4% lower than the RM36.4mil posted in the corresponding period last year, which GAB attributed mainly to the difference in timing of Chinese New Year.

Revenue dropped 4.2% to RM314.83mil in the third quarter compared with RM328.74mil a year earlier.

Its earnings per share was lower at 10.79 sen versus 12.05 sen previously.

GAB did not declare a dividend for the quarter.

In a filing with Bursa Malaysia yesterday, the company said the global financial crisis and economic slowdown had affected demand.

GAB managing director Charles Ireland said Chinese New Year was traditionally a period of strong sales for the company.

He said due to the festival occurring earlier this year, its sales were recognised in the second quarter as opposed to the previous financial year when they were recognised in the third quarter.

“Although third-quarter sales were impacted, our expectation is that the market overall will see a slowdown in the coming months. We expect GAB will deliver full-year revenue and profit ahead of the last financial year,” he said in a statement.

GAB had a 57% share of the malt liquor market (MLM) as at March 31, and correspondingly, it had 68% of the MLM industry profit pool, he added.

In comparison, Carlsberg Brewery Malaysia Bhd, the second largest player after GAB, posted net profit of RM21.39mil in the first quarter ended March 31 or 19.3% lower than the RM26.50mil in the corresponding quarter last year.

Its earnings per share was seven sen versus 8.67 sen previously and it did not declare a dividend for the quarter.

According to the company, the decline in profit was mainly due to higher raw material prices, a stronger US dollar and the timing of Chinese New Year.

  • E-mail this story
  • Print this story