Wednesday August 29, 2012
GAB: Mainstream market key
It commands a 51% market share
PETALING JAYA: Guinness Anchor Bhd (GAB) sees the mainstream alcoholic beverage market as the key battleground, after announcing yet another set of stellar results for its financial year ended June 30.
“The mainstream market is the key for more market share and now we command about 51% of the market share of the mainstream market with our brand Tiger,” said managing director Charles Ireland at the company's media briefing on its full-year financial results.
According to GAB, it currently commands about 70% of the total market volume with its mainstream beverages, while another 23% from its premium range of beverages.
Moving forward, Ireland said the company expected more growth across all it's brands especially Heineken and Guinness.
“We also expect revenue growth despite reduced reliance on export and Malaysian duty not paid markets,” he said.
For its quarter ended June 30, GAB's net profit surged 19.8% to RM34.8mil from RM29.1mil in the previous corresponding quarter.
Revenue climbed marginally to RM346mil from RM348.7mil previously.
As for its full-year results, net profit leaped 14.3% to RM207.4mil from RM181.4mil previously.
The improved performance marks the brewery's 11th consecutive year of profit growth.
It has proposed a final single-tier dividend of 55 sen, bringing its total dividend payment to RM1.25, 71 sen higher than its financial year ended 2011.
GAB had also revised its unofficial dividend policy to 90% to 95% of net profit from the 85% to 90% range.
Ireland said the revised dividend payout would optimise the company's return to shareholders while maintaining equilibrium between balanced dividend payment and adequate capital retention for growth.
GAB still has about RM200mil in short-term commercial paper and medium-term notes.
“We are in a net cash position. And we are not planning to propose any more special dividend in the next three to five years,” Ireland said.
The group saw a large increase in malt liquor market volume as its brands continues to grow and take additional market share.
GAB has also allocated about RM80mil as capital expenditure to continue on its IT upgrading initiative called Project Quantum and more improvement to its commercial supply chain.