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BUSINESS • 13/11/2024 05:40 PM

Life Water Bhd's Carbonated Drinks Not Affected By Sugar Tax

KUALA LUMPUR, Nov 13 (Bernama) -- The implementation of the sugar tax announced in Budget 2025 will not affect the carbonated beverages manufactured by Life Water Bhd.

Its managing director, Liaw Hen Kong, said the sugar content in Life Water’s carbonated drinks is below five grammes per 100 millilitres (ml).

“Our recipe (for the carbonated drinks) is below the threshold of five grammes per 100 ml. So we are not affected by the sugar tax,” he told a press conference after the company’s listing on Bursa Malaysia’s Main Market here today.

The government’s sugar tax, set to take effect on Jan 1, 2025, applies a 40 sen-per-litre excise duty on ready-to-drink beverages containing more than five grammes of sugar per 100 ml, as well as on fruit- or vegetable-based drinks with more than 12 grammes of sugar per 100 ml.

On its debut in the Main Market of Bursa Malaysia, the Sabah-based beverage company opened at 77 sen, a 12-sen premium over its IPO price of 65 sen, with 15.93 million shares traded.

Life Water raised RM63.42 million through a public issuance of 97.56 million new ordinary shares.

From these proceeds, it noted RM19.0 million or 30 per cent is allocated to set up an additional drinking water production line at Sandakan Sibuga Plant 1, RM12.0 million (18.9 per cent)  to purchase a new manufacturing line at Sandakan Sibuga Plant 2 and RM12.6 million (19.9 per cent) will fund a second distribution centre in Sandakan. 

Additionally, RM9.6 million (15.2 per cent) is earmarked for expanding its plastic packaging facilities in Kota Kinabalu, while RM4.2 million (6.6 per cent) and RM6.0 million (9.5 per cent) are allocated for working capital and to defray listing expenses, respectively.

Liaw shared that the group aims to increase the production capacity up to 800 million litres by 2027 after the completion of the water plants.

"By the year-end, our capacity will reach 448 million litres after the expansion at Keningau Plant. By 2027, this will double, giving us ample capacity to further expand to other regions," he added.

At 5pm, the company’s stock closed 29 sen higher at 94 sen, with 233.41 million shares traded. It emerged as the most active counter and topped the list of gainers. 

-- BERNAMA

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