In 2017, APU JSC, which is listed on the MSE and has the highest market capitalization, produced 97.2 liters of 166 products increasing by 4 percent from the previous year. Thus, the company paid MNT 129.4 billion and earned net income of MNT 24.8 billion. 

APU JSC’s merger with “Heineken” will make it possible to expand its market into Southeast Asia, the European Union and North America. According to the operational report of the company, the company paid MNT 43.9 billion loan repayments to international banks and invested MNT 3.5 billion in production. In 2017, the sales volume increased by 5 percent to 93 million liters.

In 2017, APU’s tax payment equals 1.6 percent of total budget revenue of Mongolia, 2.1 percent of tax revenue, 18.3 percent of excise tax and 1.3 percent of value added tax revenue.

In addition, the company intends to set up a dairy business unit as a stand-alone profit center, and separated the milk business last year. This will allow investors to be more specific in assessing the value of each company’s business. APU signed a deal with Heineken, whose products are sold in 170 countries worldwide, last year. As a result of the transaction, APU is aiming to introduce “Heineken” global beer know-how and deliver new products and services to consumers. It plans to expand production and distribution networks and increase profitability through reduced cost and administration costs.

Furthermore, the company will increase its market cap and dividend distribution. APU plans to expand its product range and produce 133.7 million liters of 218 products in 2018. It also plans to sell products worth MNT 433.7 billion. Exports to Russia, China, Inner Mongolia, Japan and Korea are exported. The company exports its products to Russia, Inner Mongolia of China, Japan and Korea.

Source: BloombergTv.mn