Guinness Anchor's 1Q net profit grows 10% to RM54.6mil

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KUALA LUMPUR (Nov 14): Guinness Anchor Bhd's (GAB) net profit climbed 10% to RM54.6 million in the first quarter ended Sept 30, 2014 (1QFY15) from RM49.62 million a year ago.

Quarterly revenue expanded by 20.7% to RM393.16 million from RM325.79 million while earnings per share (EPS) grew to 18.07 sen compared with 16.43 sen.

In a filing with Bursa Malaysia today, GAB said the stronger revenue was driven by higher sales as a result of improved pricing and brand mix.

"We have also seen the benefit of the government's measures against contraband beers and the slight improvement of consumer sentiments," it added.

GAB said the growth of profit before interest and tax (PBIT) was lower compared to the revenue growth was due to higher excise duty and sales tax payments and the increase of commercial investments.

In a separate statement, GAB's managing director Hans Essaadi said the group has delivered a strong set of results with double-digit top-line and bottom-line growth after a tough fiscal year.

"This strong growth was attributed to our core portfolio of renowned brands as well as the successful  introduction of our innovation brands and line-extensions.

"The government's increased measures against contraband beers have also helped us in delivering a strong business performance for 1QFY15," he added.

Looking forward, GAB said it would continue to focus on growing the momentum through commercial initiatives, innovation and driving investment efficiencies.

"Whilst an improvement in consumer sentiment is expected, the market environment may remain challenging due to the rising cost of living and uncertainties around the impact of the Goods and Services Tax (GST) to be implemented in April 2015," it added.

GAB share price has rebounded of late after it hit a low of RM12.38 on Oct 16 – the lowest closing since July 2012, The stock finished the week at RM13.20 today, down 14 sen or 1.05% from the closing on Thursday, giving it a market capitalisation of RM4 billion.