This article first appeared in The Edge Financial Daily, on April 13, 2016.

KUALA LUMPUR: Guinness Anchor Bhd (GAB), which saw its net profit for the three months ended March 31, 2016 jump 29% from a year ago, said it is cautious of increasing prices as this will push consumers away from duty-paid products to contraband.

“With the recent increase in excise duties for alcohol products effective March 1 and subdued Malaysian consumer sentiment, the group continues to operate in a challenging environment,” GAB managing director Hans Essaadi (pic) said in a statement yesterday.

“[However,] we expect to maintain the momentum going forward by leveraging on Heineken’s strong global brands’ activation platforms, and supported by an efficient global supply chain, which opens opportunities for cost savings through more strategic procurement,” he added.

The Irish brewer’s net profit for the January to March 2016 period rose to RM50.85 million or 16.83 sen a share from RM39.46 million or 13.06 sen a share a year ago.

GAB attributed the improved quarterly net profit to it employing effective strategies and increasing business efficiency.

Revenue grew 5% to RM458.91 million from RM437.33 million, mainly due to higher sales volume and better brand mix on the backdrop of good festive performance during Chinese New Year. This was partially offset by the implementation of the goods and services tax.

On Nov 25 last year, GAB announced that its financial year end will be changed from June 30 to Dec 31 to coincide with the financial year of its ultimate holding company Heineken NV and to comply with Section 168(1) of the Companies Act, 1965. As such, its current financial statements will be for a period of 18 months, from July 1, 2015 to Dec 31, 2016.

For the nine-month period ended March 31, 2016, GAB saw its net profit rise 20% to RM204.79 million or 67.79 sen a share from RM170.17 million or 56.33 sen a share, thanks to higher sales and improved cost efficiency in commercial spending.

Revenue for the same period increased 3% to RM1.39 billion from RM1.35 billion a year ago, mainly driven by higher sales.

On prospects, GAB said the group will continue to focus on delivering its key strategies for the financial year, while staying agile and adapting quickly to any changes in the environment.

“Following a resilient first nine months’ performance, the group remains confident that it will deliver a good performance for the financial year ending Dec 31, 2016,” it added.

GAB shares, which have gained by about 8% this year, closed unchanged at RM13.82 yesterday, with a market capitalisation of RM4.18 billion.