1. Basis of Preparation

The interim financial statements are unaudited and has been prepared in accordance with the requirements of Financial Reporting Standard (FRS) 134 “Interim Financial Reporting” (Previously known as MASB 26) issued by the Malaysian Accounting Standard Board and paragraph 9.22 and Appendix 9B of the Listing Requirements of the Bursa Malaysia Securities Berhad. It should be read in conjunction with the Group’s annual audited financial statements for the year ended 31 December 2007.

The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the financial year ended 31 December 2007.

The accounting policies and methods of computation adopted by the Group in these quarterly financial statements are consistent with those adopted in the most recent audited annual financial statements for the year ended 31 December 2007.

2. Auditors' Report on Preceding Annual Financial Statements

The auditors’ report on the financial statements for the year ended 31 December 2007 was not qualified .

3. Seasonal or Cyclical Factors

The Group’s level of operations for the quarter under review was lower as expected following the preceding quarter which was impacted by the Chinese New Year festive activities.

4. Unusual Items

There were no unusual items affecting assets, liabilities, equity, net income, or cash flows during the financial period ended 30 June 2008.

5. Changes in Estimates

There were no changes in estimates that have had a material effect in the current quarter.

6. Debt and Equity Securities

There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities.

Share Buyback

During the period, there was no purchase of shares by the Company.

All shares bought back in 1999 were retained as treasury shares for the current quarter and financial year-to-date.

7. Dividends Paid

The amount of dividends paid during the financial period ended 30 June 2008 was as follows:- In respect of the financial year ended 31 December 2007 as reported in the directors‟ report of that year:

	RM'000
i) Final dividend of 7.5 sen per RM0.50 share less tax, paid on 16 May 2008	16,969
ii) Special dividend of 22.5 sen per RM0.50 share less tax, paid on 16 May 2008	50,907
	67,876

8. Segmental Information

There is no segmental analysis disclosed as the Group operates in the brewing industry in Malaysia involving the production, packaging, marketing and distribution of its products principally in Malaysia. Approximately 10.0 per cent of the total sales revenue was generated through exports.

9. Material Contracts

Apart from that disclosed in the previous announcements, there are no other material contracts.

10. Carrying Amount of Revalued Assets

The valuations of property, plant and equipment and investment properties have been brought forward without amendment from the financial statements for the year ended 31 December 2007.

11. Subsequent Events

There were no material events subsequent to the end of the current quarter.

12. Changes in Composition of the Group

There has been no change in the composition of the Group in the current quarter.

13. Changes in Contingent Liabilities and Contingent Assets

There were no changes in contingent liabilities or contingent assets since the last annual balance sheet as at 31 December 2007.

14. Capital Commitments

The amount of commitments for the purchase of property, plant and equipment not provided for in the interim financial statements as at 30 Ju 2008 is as follows :

15. Holding Company

The Directors regard Carlsberg Breweries A/S, a company incorporated in Denmark, as the holding company.

16. Significant Related Party Transactions

17. Review Of Performance

Group‟s revenue for the second quarter ended 30 June 2008 increased marginally by 1.5 per cent to RM199.0 million compared to the corresponding quarter in the previous year. The higher revenue was mainly driven by higher domestic sales which has more than offset the significantly lower level of revenue from contract manufacturing of Carlsberg for the Singapore market (full impact from February 2008 onwards).

On year-to-date basis, Group‟s revenue has increased by 8.7 percent compared to the same period last year.

Group‟s Profit Before Tax for the quarter decreased by 5.3 per cent to RM20.7 million, impacted by lower contribution from contract manufacturing and rising global prices in raw and packaging materials mitigated by higher domestic sales and lower trade discounts.

Year-to-date Group‟s Profit Before Tax was RM56.2 million. This is an improved performance compared to the corresponding period last year which had suffered from a major restructuring exercise.


18. Variation Of Result Against The Preceding Quarter

Group‟s revenue for the quarter decreased by 31.2 per cent or RM90.4 million as compared to the preceding quarter. This was mainly due to lower sales volumes following the Chinese New Year festive period in the previous quarter. Consequently, Group‟s Profit Before Tax decreased by 41.7 per cent or RM14.8 million.

19. Current Year Prospects

The growth in the first quarter of 2008 was an encouraging start to the year. However, the recent fuel and diesel price hike and rising inflationary costs are expected to dampen sentiments and slow the growth.

With the ongoing implementation of the Group‟s revised strategic plan, the increasing demand for the Group‟s products is expected to continue in the coming quarters, especially given the enlarged portfolio and increased focus on premium brands.

As previously announced, the Group has lost a major part of the contract manufacturing business with Carlsberg Singapore Pte. Ltd. which reduces the Group‟s export revenue and profit significantly compared to the previous year.

Escalating prices for raw and packaging materials are expected to exert downward pressure on the Group‟s profit margin, which is expected to be offset by the consumer price increase of two per cent implemented in April 2008 as well as improvements in operational cost effectiveness.

However, sustainable growth for the rest of the year is dependent on no further increases in duties for beer and stout products as well as effective enforcement to curb smuggled and counterfeit beer and stout products in the country. In light of the foregoing, the Group expects the second half of 2008 to be challenging, but the result for the full year is expected to be satisfactory.

20. Profit Forecast

Not applicable as no profit forecast was published.

21. Taxation

22. Quoted Investments

On 23 June 2008, Carlsberg Distributors Taiwan Ltd (CDTL), a 50% joint-venture company between Carlsberg Brewery Malaysia Berhad (CBMB) and Wiseline Limited signed a Share Sales Agreement with Cottingham Co. Ltd., to acquire 75% equity in Cottingham Co. Ltd., Taiwan (Cottingham). Cottingham is an established Taiwan distributor of premium beers such as Corona, Erdinger, Hoergaarden, Stella Artois as well as hard liquor products and other beverages.

The net investment for CBMB‟s 37.5% equity in Cottingham is NTD22.5 million.

23.Quoted Investments

There were no purchases or disposals of any quoted investment during the period under review.

Investments in quoted securities as at 30 June 2008:

24. Status Of Corporate Proposals Announced

Status of corporate proposals announced but not completed: NIL.

25. Borrowing And Debt Securities

There were no further group borrowings and debt in the current quarter apart from that previously disclosed.

26. Off Balance Sheet Financial Instruments

Forward Foreign Exchange Contracts

As at 15 August 2008 (the latest practicable date which shall not be earlier than 7 days from the date of issue of this quarterly report), the foreign exchange currency contracts which have been entered into by the Group to hedge its foreign sales proceeds have matured and there are no existing contracts.

27 Material Litigation

There was no material litigation action since the last annual balance sheet date to the date of this report.

28. Dividends

The Board of Directors has declared an interim dividend of 5 sen per 50 sen share, less 26% income tax (2007 – interim 5 sen per 50 sen share, less 27% income tax) for the year ending 31 December 2008.

Total amount payable is RM11.3 million (2007 – RM11.2 million).

29. Basic Earnings Per Share

Basic earnings per share
Basic earnings per share is calculated by dividing the net profit for the period by the weighted average number of ordinary shares outstanding during the period, excluding treasury shares held by the Company:

Diluted earnings per share
Not applicable.

30. Authorisation for Issue

The interim financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 22 August 2008.