Beer is the most widely consumed alcoholic beverage and it is oldest prepared beverage in the world; the beer is third most popular after water and tea. The big two breweries that are Carlsberg Brewery Malaysia Berhad(CBMB) and Guinness Anchor Berhad(GAB) in malaysia.
Strengths and weakness of Carlsberg Brewery Malaysia Berhad
The strengths of Carlsberg Malaysia are that brand image, strong financial position quality and distribution network. The Carlsberg Group has a long tradition for sponsorships that can be positively associated with Carlsberg brands. The Carlsberg Malaysia has financially powerful to be protected from the fluctuating fortunes of the Malaysian market. The weakness of Carlsberg brewery is face a largely Muslim population in Malaysia so the government has used the alcoholic drinks industry as a source of revenue generation and accordingly excise hikes are large and frequent. The cost of beer brands in Carlsberg Malaysia is getting higher, due to the consumption tax.
Strengths and weakness of Guinness Anchor Berhad
The strength of Guinness Anchor Berhad is the joint venture of the winning brands companies such Guinness, Tiger, Anchor and Heineken. In Malaysia There are five popular brands in the market which are tiger, Carlsberg, Heineken, Anchor, and Guinness. In this five brands have four is come from Guinness Anchor Berhad. Based on the pie chart below, it shows the market share for beer brewer in Malaysia. As GAB claims 59% of market share and is obviously ahead of Carlsberg, which is estimated to be at 41%.
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The weakness of Guinness Anchor Berhad and Carlsberg shared the same weaknesses which are government interference of tax control and face a largely Muslim population in Malaysia and the government has used the alcoholic drinks industry as a source of revenue generation.
2. Financial analysis
Quick assets ratio
Gross profit margin
Operating profit margin
Total asset turnover ratio
Long term debt to total
Net profit margin
Return of total assets
Return on equity ratio
Carlsberg Brewery Malaysia
Financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. I will compare 12 months ended 31 December 2010 between Carlsberg Brewery Malaysia Berhad(CBMB) and Guinness Anchor Berhad(GAB).
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1. Quick assets ratio
GAB is RM2.17 quick assets to meet every RM1.00 and CBMB is RM1.13 quick assets to meet every RM1.00 of current liabilities. That means GAB have enough cash on hand to meet accounts payable, interest expenses and other bills when they become due. The higher the ratio, the more...
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