KUALA LUMPUR (Aug 14 ): Guinness Anchor Bhd (GAB) saw its net profit fall 6.2% to RM44.02 million or 14.57 sen per share for its fourth financial quarter ended June 30, 2015 (4QFY15) from RM46.94 million or 15.54 sen per share a year ago, due to low consumer sentiment, inflationary pressure post introduction of the goods and services tax (GST)  and unfair competition from contraband beers.

Revenue for 4QFY15 also declined 3.7% to RM397.62 million from RM412.87 million in 4QFY14, mainly due to the replacement of sales tax by the GST.

The group has proposed a final dividend of 51 sen per share for the financial year ended June 30, 2015 (FY15), subject to  approval of shareholders at the upcoming annual general meeting. If approved, the total dividend payment for the year will amount to 71 sen per share.

For the full year FY15,  GAB's net profit improved 8.1% to RM214.19 million or 70.9 sen a share from RM198.21 million or 65.61 sen a share in FY14,  mainly due to higher revenue and cost efficiency in commercial investments and overheads.
 
Revenue rose 8.6% to RM1.75 billion from RM1.61 billion.

GAB attributed the improved revenue for FY15 to overall strong performance due to market recovery and the government’s effective measures against contraband beers.
 
In a filing with Bursa Malaysia today, GAB said the domestic business environment is still going through the adjustment period post GST.

"Consumers remain cautious in their spending. In addition, the weakening of  the ringgit has created cost challenges for the group," it added.

In a separate statement, GAB managing director Hans Essaadi said despite the best efforts of the Royal Malaysian Customs, the availability of cheaply priced illegally imported beers continues to be an issue.

"Industry, retailers and consumers must continue to support efforts that are being made to fight the sale of contraband beers in Malaysia as these illicit products are depriving the nation of significant tax revenue.

"With the strong strategy and fundamentals which we have demonstrated in FY15, GAB remains confident in navigating through the challenging environment ahead in order to deliver sustainable performance in the coming financial year,” he added.

Shares in GAB (fundamental: 2.3; valuation: 2.1) closed 12 sen or 0.92% lower at RM12.98 today, giving it a market capitalisation of RM3.92 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)