MIRA INFORM REPORT

 

 

Report Date :

05.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MYANMAR CARLSBERG CO., LTD

 

 

Registered Office :

Building No.7/8, Bahosi Housing, Bogyoke Aung San Rd., Lanmadaw Tsp., Yangon

 

 

Country :

Myanmar

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

01.02.2013

 

 

Legal Form :

Company limited by shares

 

 

Line of Business :

Subject is engaged in manufacture of beer

 

 

No. of Employees :

3,000

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

New Business

 

--

 

Status :

New company

Payment Behaviour :

Unknown

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Myanmar

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


REGISTERED NAME & COMPANY SUMMARY

 

MYANMAR CARLSBERG CO., LTD

 

 

ADDRESSES:

Main Address:   Building No.7/8, Bahosi Housing, Bogyoke Aung San Rd., Lanmadaw Tsp.

Zip code/City:    Yangon, Myanmar

Telephone:        +95 1 223415

                        +95 1 501338

 

 

Profile

Established:                  2013

Line of Business:           Drinks

Industry Division:            Manufacturing

Industry-code (NACE):    1105 Manufacture of beer

Banks:  Unknown.

Employees:                   3,000

CNPJ:                           -

 

 

DIRECTORS/MANAGEMENT

 

Board of Directors:

Manager            Dean Aung

Director             Daniel  Sjogrem

 

Official Administration:

Chief Executive  U Thant  ZinTun

 

 

NEGATIVE INFORMATION

 

Public information:

-

 

 

SHARE & SHARE CAPITAL INFORMATION

 

Legal form:                                            Company limited by shares

Incorporation date:                                 01.02.2013

Balance sheet filing date:                        -

Tax Contributor Number (CNPJ):  -

Legal status:                                         active

Responsible Register:                            State Register of Myanmar

 

Entry    Deleted            Name

active                            Myanmar Carlsberg Co., Ltd

 

 

PAYMENT INFORMATION

 

Import and Export:

-

 

Payment history:

No payment history is available.

 

 

GROUP STRUCTURE & AFFILIATED COMPANIES

 

Owners/-s:

Class:                           50-100%

Type:    direct,               Group-Level 1

Name:                           CARLSBERG AS

City/Country:                 COPENHAGEN V, Denmark/DK

Interest:                        51,00% voting right, 51,00% capital interest (since 2013)

 

Class:                           40-49%

Type:    direct

Name:                           MGS Breweries Co., Ltd.

City/Country:                 Yangon, Myanmar/MM

Interest:                        49,00% voting right, 49,00% capital interest

 

MGS Breweries and Carlsberg have formed a Joint Venture – Myanmar Carlsberg Co., Ltd. – with plans to set up a new greenfield brewery and distribute Carlsberg beers in the local market. The joint venture is 51% owned by Carlsberg.

 

MGS Breweries Co., Ltd. holds 49% and is a subsidiary of Myanmar Golden Star (MGS) Co, Ltd. - a leading and well-established company in Myanmar with diverse businesses and operations such as food, alcoholic and non-alcoholic beverages, banking, medical services, farming, agricultural and natural resources, mining, aviation, telecommunications, consumer electronics trading and distribution, retail business, hotel and real estate, foundation, and media advertising.

 

 

FINANCIAL INFORMATION

 

Financial Data CARLSBERG AS

Consolidation:               consolidated

Industry:                       Trade/Industry

 

Fiscal year end:                                   31.12.2013        31.12.2012

Number of months:                                       12                    12

Currency:                                                mil. DKK           mil. DKK

 

Balance Sheet

Intangible fixed assets                                 91,895.0           91,216.0

Land and buildings                                       13,344.0           12,855.0

Other tangible fixed assets                           20,138.0           19,136.0

Tangible fixed assets                                   33,482.0           31,991.0

Financial fixed assets                                    2,359.0             6,241.0

other fixed assets                                          3,268.0             3,378.0

Fixed assets                                             131,004.0          132,826.0

Stocks                                                         4,762.0             4,541.0

Trade accounts receivable                              7,888.0             7,828.0

Liquid assets                                                3,714.0             5,760.0

other trade accounts                                      2,204.0             2,153.0

Accruals                                                       1,566.0                853.0

Other current assets                                      7,484.0             8,766.0

Current assets                                            20,134.0           21,135.0

Total assets                                              151,138.0          153,961.0

 

Capital                                                         3,051.0             3,051.0

Other shareholders funds                             64,760.0           67,210.0

Total shareholders equity                             67,811.0           70,261.0

Minority interests                                          3,688.0             3,389.0

long term debt (financial debts)                     30,686.0           36,706.0

Provisions                                                     1,278.0             1,230.0

Other non currentliabilities                            13,284.0           14,840.0

Non currentliabilities                                    45,248.0           52,776.0

short term debt (financial debts)                      9,525.0             3,352.0

Trade accounts payable                               12,927.0           11,862.0

Provisions                                                       530.0                619.0

other accounts payable                                11,409.0           11,702.0

other current liabilities                                  11,939.0           12,321.0

Current liabilities                                          34,391.0           27,535.0

Shareh. equity, min. interests + liabilities     151,138.0          153,961.0

 

Profit and loss account

Sales                                                         93,732.0           92,367.0

Reduction of proceeds                                 27,180.0           25,899.0

Net sales                                                    66,552.0           66,468.0

Other operating revenue                                      17.0                230.0

Operating revenue                                        66,569.0           66,698.0

Cost of goods sold                                       33,622.0           33,831.0

Gross profit                                                 32,947.0           32,867.0

Other operating expenses                            23,685.0           23,097.0

Operating result                                            9,262.0             9,770.0

Interest revenues                                              307.0                345.0

other financial revenues                                    530.0                663.0

Financial income                                              837.0             1,008.0

Interest expenses                                          1,726.0             1,905.0

other financial expenses                                   528.0                767.0

Financial expenses                                       2,254.0             2,672.0

Financial result                                            -1,417.0            -1,664.0

Result before extraordinary items                    7,845.0             8,106.0

Result before taxes                                       7,845.0             8,106.0

Taxes                                                           1,894.0             1,861.0

Result before minority interests                      5,951.0             6,245.0

minority interests                                             480.0                638.0

Result for the financial year                            5,471.0             5,607.0

 

Cash flow

Depreciation                                                 3,733.0             3,752.0

Cash flow                                                     9,684.0             9,997.0

Cash flow from operating activities                  9,083.0             9,871.0

Investments in tangible fixed assets                5,788.0             5,067.0

Cash flow from investing activities                  -8,883.0            -3,974.0

Cash flow from financing activities                  -1,778.0            -3,589.0

Others                                                           -165.0                 -84.0

Change in liquidity                                        -1,743.0             2,224.0

Liquidity at beginning of the year                     5,059.0             2,835.0

Liquidity at end ot the year                             3,316.0             5,059.0

 

Notes

Added value                                                13,304.0           13,763.0

Working Capital                                              -277.0                507.0

Sales per Employee                                         708.0                707.1

Gross cost land and buildings                       19,354.0           18,625.0

Gross cost other tangible fixed assets           44,153.0           43,569.0

Gross cost total                                          63,507.0           62,194.0

 

Employees  average                                       40,435              41,708

 

 

Financial information:

 

Private companies in Myanmar are not required to disclose financial statements. These have been requested from the company but they have not been made available as the subject regards this information as strictly confidential.

 

For completeness sake we include the latest filed figures of the parent company Carlsberg AS, Denmark.

 

 

FOREIGN EXCHANGE RATES

 

Exchange rate:

US$ 1,00  =  MMK 945.800        -  Official rate on 03.05.2014

 

ADDITIONAL INFORMATION

 

Main Activities:

The company is engaged in manufacture of beer.

 

The company is part of the Carlsberg Group. The Carlsberg Group is one of the leading brewery groups in the world, with a large portfolio of beer and other beverage brands. Our flagship brand – Carlsberg – is one of the best-known beer

brands in the world and the Baltika, Carlsberg, and Tuborg brands are among the eight biggest

brands in Europe. More than 41,000 people work for the Carlsberg Group, and our products are

sold in more than 150 markets. In 2011, the Carlsberg Group sold more than 115 million hectolitres

of beer, which is about 34 billion bottles of beer.

 

The factory has been established on 54 acres of land at Nyaung Inn Village in Bago Industrial Zone. It will use purified water and Bago’s high standard rice, while materials such as hops and barley will be imported from abroad.

The factory is expected to employ 3,000 employees and will be managed by the brewers from Carlsberg Group and skilled local practitioners.

 

Operations & branches:

At the address, Building No. 7/8, Bahosi Housing, Bogyoke Aung San Rd., Lanmadaw Tsp., Yangon, we find the company's head office.

 

Factory in Bago.

 

Staff:

3,000

 

 

NOTES & COMMENTS

 

We have contacted an employee who was unwilling to cooperate with the interview on grounds of confidentiality.

 

No e-mail contact was provided in the interview.

 

We suggest you seek guarantees from the parent company Carlsberg AS, Denmark when dealing with subject matter.

 

 

News

 

"Carlsberg Group announces a new joint venture in Myanmar

 

Carlsberg Group announced today that it has signed a strategic partnership agreement with a local privately-owned leading beverage company, Myanmar Golden Star (MGS) Breweries, to brew and market Carlsberg beers in Myanmar.

Under this agreement, MGS Breweries and Carlsberg have formed a Joint Venture – Myanmar Carlsberg Co., Ltd. – with plans to set up a new greenfield brewery and distribute Carlsberg beers in the local market. The joint venture is 51% owned by Carlsberg.

 

“We have followed the developments in Myanmar closely and are encouraged by the recent political developments in the country. We believe that the timing is right for us to invest in the country. We expect that the Myanmar beer market will grow strongly in coming years as the economy expands. MGS Breweries is one of the leading soft drinks producers in Myanmar and a partner we have known for many years. This partnership is a pivotal development in expanding our presence in the country,” said Roy Bagattini, Sr. Vice President of Carlsberg Asia Region.

 

“We are delighted to partner with Carlsberg, bringing together one of the world’s leading brewery groups to combine with MGS Group of Companies – one of Myanmar’s leading industrial groups. This collaboration provides us with the opportunity to play a key role in developing the beer category in Myanmar. As an industry leader, Carlsberg is bringing in its expertise, innovation and international standards. This, combined with MGS Group’s already well-established capabilities and local position in the market, will enable us to capitalize on the significant growth potential of the beer category,” commented Thant ZinTun, Vice Chairman of MGS Group of Companies.

 

To initiate the new partnership, Carlsberg and MGS Breweries today are holding a joint venture inauguration ceremony in Yangon, attended by several senior government representatives including the Yangon Prime Minister.

 

“Indochina is an important growth region for Carlsberg in Asia. We enjoy leading positions in Laos and Cambodia and hold a strong presence in Vietnam. In Thailand we have recently established a collaboration agreement with the leading brewery group, Singha Corporation. Our entry into Myanmar is a significant milestone for us and reinforces our ambitions to expand our presence in the region,” added Bagattini.

 

As a responsible global brewer, Carlsberg is putting an emphasis on its commitment to support the country’s continued development and economic growth.

 

“We firmly believe that Myanmar is a market that offers great potential and we are looking forward to starting up operations soon,” concluded Bagattini."

 

In Carlsberg Group Press Release February 2, 2013

            "Carlsberg enters Myanmar with MGS deal

 

Carlsberg Group, the world’s fourth-largest brewery group, has announced its entry into the Myanmar market.

 

The Danish brewer signed a strategic partnership agreement with Myanmar Golden Star (MGS) Breweries in Yangon on February 1. Carlsberg will be 51 percent owner of the newly formed Myanmar Carlsberg Co Ltd. Under the agreement Carlsberg plans to brew and market beer in the country under its world-renowned label.

 

“We have followed the developments in Myanmar closely and are encouraged by the recent political developments in the country,” Roy Bagattini, senior vice president of Carlsberg for Asia, said in a statement released by the company on February 1. “We believe that the timing is right for us to invest in the country. We expect that the Myanmar beer market will grow strongly in coming years as the economy expands.”

 

Jorgen Buhl Rasmussen, Carlsberg’s chief executive officer, told The Myanmar Times that the company will build a production facility in Bago Region capable of producing 1 million hectolitres of beer a year. The investment for the project would be about US$50 million, he said. The area in Bago will be developed into a larger industrial zone with a strategic position near the proposed Hantharwaddy International Airport.

 

“The most important thing for us was that the plan with the area is to turn it into an industrial area, and it means that everything for the factory, such as water supplies and electricity, is going to be there,” said Mr Rasmussen of the location.

 

Carlsberg’s Myanmar partner, MGS Group of Companies, is privately owned by U Thein Tun. MGS Beverages produces the carbonated soft drink brands Quench, Crusher and Star Cola, as well as Popa brand bottled water.

 

In 1991, a partnership with MGS brought PepsiCo to Myanmar for the first time.

 

“As an industry leader, Carlsberg is bringing in its expertise, innovation and international standards. This, combined with MGS Group’s already well-established capabilities and local position in the market, will enable us to capitalise on the significant growth potential of the beer category,” said U Thant ZinTun, vice chairman of MGS Group of Companies, who was named executive director of Myanmar Carlsberg.

 

U Thant ZinTun said construction of the brewery is to begin in three months and he expects it will be finished by June or July 2014. Though Mr Rasmussen said that he did not want to put a figure on the number of jobs the project would create, U Thant ZinTun estimated that the brewery and its distribution network would result in about 2500 new jobs.

 

He added that Carlsberg beer would be marketed as a premium product, while two to three other beers would be developed to compete with local brands such as Myanmar Beer and Mandalay Beer.

 

U Thant ZinTun said the partnership is the culmination of a year-long process, but MGS and Carlsberg have a relationship that dates back two decades.

 

The two companies began working together in 1993 but Carlsberg was forced to leave the country three years later under mounting pressure from human rights activists and threats of a boycott of the brand.

 

Mr Rasmussen said MGS was the only company that Carlsberg considered for the new venture.

 

“We know MGS from before and there is a good relationship. It is one thing to figure out how to do business together. Another thing is that the relationships and the chemistry have to work, which it certainly does in this partnership,” said Mr Rasmussen.

 

In 2011 Carlsberg did 18pc of its business in Asia. Prior to its Myanmar announcement, Carlsberg’s last large scale move in Asia came in 2010 when the company purchased a 12.5pc stake in China’s Chongquing Brewery for $338.3 million."

 

In Myanmar Times by Tim McLaughlin and Maria Danmark, February 1, 2013

            "Carlsberg Signs JV for Bago Brewery

 

Danish beer giant Carlsberg has formed a joint-venture with Myanmar Golden Star Breweries (MGS) to build an international-standard brewery in Bago.

“We will establish the highest quality brewery, which will combine the local people’s good skill with international standards to produce and distribute Carlsberg beer in Myanmar,” said Daniel Sjogrem, managing director, Myanmar Carlsberg Co Ltd.

The factory has been established on 54 acres of land at Nyaung Inn Village in Bago Industrial Zone. It will use purified water and Bago’s high standard rice, while materials such as hops and barley will be imported from abroad.

The factory is expected to employ 3,000 employees and will be managed by the brewers from Carlsberg Group and skilled local practitioners.

“Myanmar has a population of 60 million and drinks 4 litres per person per year, making it the lowest beer drinking country in Asia. This creates good potential for a strong domestic beer market,” said U Thant ZinTun, a board director from Myanmar Carlsberg Co Ltd.

The initial investment for the factory is $37 million, with that figure expected to increase to $50 million.

Carlsberg is the fifth largest brewery group in the world and also brews Tuborg as well as a range of local beers in Europe.

Carlsberg’s entry into Myanmar will be seen as a welcome relief for the country’s beer drinkers who, until now have been limited in their choice of beers."

 

In Myanmar Business Today by PhyuThitLwin, October 24, 2013

            "Myanmar Carlsberg company prepares to start operation

 

BAGO – Myanmar Carlsberg company is preparing to invest in Bago industrial zone, sources say.

Myanmar Carlsberg’s Finance and Business Planning Director Mr. Dheeraj Mishra met with Director General of Directorate of Investment and Companies Administration (DICA) Aung NaingOo on December 18 to discuss about the required rules and regulations to make investment.

Myanmar Carlsberg company is a joint venture company of Carlsberg Group and MGS Breweries company registered in December 14, 2012. The joint venture company has been allowed by Myanmar Investment Commission (MIC) in accord with Foreign Investment Law to operate on February 26, 2013.

Myanmar Carlsberg is planning to import its products manufactured in Myanmar to EU market and planned to invest between US$ 35 million and US$50 million, sources from Carlsberg Group say.

The Carlsberg Group is founded in 1847 and its headquarters is located in Copenhagen, Denmark. It produces beer, soft drinks and soda and its products are distributed in US, Europe and Asia markets, sources say.

Source: ELEVEN Myanmar"

 

In Consult Myanmar December 23, 2013

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.23

UK Pound

1

Rs.101.68

Euro

1

Rs.83.46

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NNA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.