CARLSBERG Brewery Malaysia Bhd posted a healthier quarter-on-quarter (qoq) net profit and revenue of RM40.63 mil (2Q FY2020: RM10.65 mil) and RM435.32 mil (2Q FY2020: RM287.27 mil) respectively as its production, sales and distribution in Malaysia and Singapore transitioned to the “new normal” amid the COVID-19 pandemic.
However, on a year-on-year (yoy) basis, Carlsberg Malaysia’s 3Q FY2020 net profit declined 41.3% from RM69.18 mil in the same period in 2019 while its revenue dwindled 19.7% from RM542.22 mil the previous year.
“These were mainly due to lower sales but mitigated by lower marketing spend and reduction in operating expenses,” Carlsberg Malaysia noted in a media release.
“The group also registered a higher share of profits of RM5.8 mil from its associate company Lion Brewery (Ceylon) PLC, an increase of 8.3% versus the same quarter last year following the lifting of lockdown and curfew measures in Sri Lanka in end-June.”
For the nine-month period of its FY2020, the brewer’s net profit declined 44% to RM124.23 mil (9M FY2019: RM222.02 mil) while its revenue was 22% lower at RM1.31 bil (9M FY2019: RM1.68 bil).
The company’s decision to suspend quarterly dividend payments for FY2020 ending Dec 31 remains for 3Q FY2020.
Managing director Stefano Clini attributed the group’s improved performance on a qoq basis to diligence in implementing business continuity roadmap, reprioritisation of costs, processes and structures, as well as a disciplined approach to its ‘Fund the Journey’ initiatives.
“This is especially with a re-focusing on off-trade and e-commerce sales resulting in increased sales in these channels, boosted by the Carlsberg Liverpool FC Champions promotion,” he pointed out.
As the group enters its 4Q FY2020, Clini cautioned that the recent spike in COVID-19 cases and the subsequent stricter lockdown measures imposed in most states in Malaysia have taken another toll on on-trade consumption which had been on the path toward fragile recovery in 3Q FY2020.
“In these uncertain times, we will continue to focus on our strategic priorities while working closely with our business partners and distributors to be highly agile and adaptable within a volatile operating environment,” he added.
As part of the Confederation of Malaysian Brewers Bhd, Carlsberg Malaysia also applauded the Government for not increasing excise duties on beer during the recent Budget 2021 announcement given any increase will further incentivise illicit trade while making legitimate beer less affordable for consumers.
Carlsberg Malaysia was last traded at RM23.24, up 74 sen or 3.29% with 815,800 shares traded, thus valuing the company at RM7.1 bil. – Nov 12, 2020
